The US dollar is coming under increasing downside pressure against the Japanese yen after the US dollar index suffered a steep reversal on Thursday. Bearish momentum is starting to build, with technical sellers testing the 113.00 support level. The recent reversal from the 113.40 level has the potential to create a bearish head and shoulders pattern on the lower time frames.
The USDJPY pair is bearish while trading below the 112.87 level, key support is now found at the 112.20 and 111.10 levels.
If the USDJPY pair trades above the 112.87 level, buyers are likely to test the 113.40 and 114.20 resistance levels.
