USD/JPY Technical Analysis: Bears attack 100-HMA support

• The USD/JPY has dipped below the 200-hour moving average (200-HMA) support of 111.00 and could drop further if the equity markets in Europe and America report losses.
• As of writing, the S&P 500 futures are flatlined. Further, the 14-hour relative strength index (RSI) is reporting oversold conditions. As a result, the pair could trade in a sideways manner around 111.00 for the next few hours.
• The support at 110.59 (July 26 low) could be put to test if the ratings agency Fitch downgrades Italy, sending stock markets lower across Europe.

Hourly Chart

Spot Rate: 110.95

Daily High: 111.07

Daily Low: 110.88

Trend: Consolidation likely

Resistance

R1: 111.14 (50-day moving average)

R2: 111.49 (Aug. 24 high)

R3: 111.83 (Aug. 29 high)

Support

S1: 110.59 (July 26 low)

S2: 110.32 (100-day moving average)

S3: 110.00 (psychological level)