The dollar/yen exchange rate (USD/JPY) in the second half of April again reached the key resistance zone within the vicinity of 112.20. As can be seen in the daily graph below, the attempt to overcome this area was unsuccessful.
Instead, the quotations broke the support at 111.36 (the abolition of 38.2% of the month-long upward movement). The next target was the zone between 110.52 – 110.73, where two significant abolitions meet: 61.8% of the traffic discussed just now and 38.2% of the increases since 4th January.
At the close of yesterday’s session, the support area at 110.52/73 was also conquered. Thus, the sellers opened their way to another zone, which begins in the low from March at 109.72.
In case of a positive test of the area at 109.37/72, a rebound towards the zone at 110.52/73 is expected. Alternatively, the continuation of drops may lead to quotations around the 108.70 level.