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USD/JPY: Bears tighten grip, tests weekly lows near 111.80

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Asian traders embrace risk-off moods yet again in the mid-Asian trades, sending USD/JPY back below 112 handle in a bid to retest weekly lows reached near 111.75 region.

    USD/JPY sold-off above hourly 20-SMA

    The demand for the safe-haven yen is on the rise as investors continue to seek havens after the global sell-off extends into a second day, with the black gold’s decline crushing risk appetite. At the time of writing, USD/JPY drops -0.24% to 111.82, heading towards daily lows reached at 111.76 levels.

    Moreover, BOJ Governor Kuroda’s efforts to justify the recent slide in USD/JPY as a result of broad USD weakness did little to derail the yen from its bullish run and kept the major in the red. In the day ahead, the broader market sentiment will continue to influence the major ahead of US datasets, which includes new home sales and flash services PMI.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 112.24/37 (daily pivot/ 5-DMA). A break above the last, the major could test 112.87 (1h 100-SMA). While to the downside, the immediate support is seen at 111.50/42 (psychological levels/ daily S1) and below that at 110.98 (Feb 11 Low).
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