USD/JPY continues to decline in today’s session, and is currently trading at 112.87, down 0.29% from Thursday’s North American close.
Near term support at the 20-day moving average has been broken, leaving the bias heading into next week to the downside. And, the 61.8% retracement level of the advance from the February low to the February high is being tested. Breaking below this level, a development which appears imminent, would call for a drop back down to the February lows, near 111.59.
On the upside, resistance is at the 20-day moving average, which comes in at the 113.30 level.
With the Stochastic producing a bearish cross on the daily chart, and still moving lower, the bias remains to the downside.
In today’s economic news, confidence among Japanese manufactures rose for a sixth straight month in February, to a 2-1/2 year high, but the services sector mood fell for the first time in four months, a Reuters poll showed, underscoring the export-led nature of the economic recovery.
The Reuters’ monthly poll-which tracks the Bank of Japan’s key quarterly tankan, found confidence at manufacturers falling over the next three months, and service-sector firms holding steady.
In US economic news today, leading indicators will be released at 10:00 ET.