USD/JPY outlook: the pair in a broad range above the 111.65 support level

On Tuesday, the dollar was near a two-week high against major currencies supported by a stable US economy. The dollar received some support from the increase in yields on US Treasury bonds, as recent data, including data on the gross domestic product of the United States in the fourth quarter, easing concerns about a possible rapid loss of economic momentum. In Japan, the activity of the services sector expanded in February as the new business grew at the fastest pace in almost six years.

USD/JPY Technical Analysis

The US Dollar rallied recently and broke the 111.50 resistance area against the Japanese Yen. The USD/JPY pair even broke the 111.80 resistance before the sellers appeared near the 112.15 level.

The pair declined a few pips and started trading in a broad range above the 111.65 support level. Recently, it broke the 111.90 level, the 50 hourly simple moving average, and a connecting bullish trend line with support at 111.85 on the hourly chart.

The current price action suggests an increase in selling pressure below 111.85. However, the 111.65 range support holds the key. As long as the pair is above 111.65, it could bounce back above 111.85 and 112.00.

If buyers fail to protect the 111.65 support level, there is a risk of a sharp decline in USD/JPY. The next key supports are near 111.50 and 111.20.