The U.S dollar has slipped below key support against the Japanese yen during the European trading session, hitting 113.55, as the U.S tax reduction plan faces a possible set back later today. The U.S Dollar index is also sliding lower and stocks are turning down, as the specter of a delay to the proposed corporate tax reduction by the Republican Senate, weighs on overall risk-on trading sentiment. The USDJPY pair currently trades around the price-lows of the day, after earlier breaching the key 113.68 technical level.
Should price action remain below the 113.68 level for a sustained period, further declines towards the 113.33 and 112.90 levels appear most likely. Extended intraday USDJPY support is located at 112.29 and 111.79.
If price-action closes back above the 113.68 level, further upside towards the 113.89 and 114.24 levels remains possible.
