1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

USD/JPY: Carnage continues, 118.00 a whisker away

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Bali) - USD/JPY is falling aggressively yet again, currently trading just 10/15 shy of 118.00, a pivotal support that if broken, ay see losses accelerate significantly, given the lack of further support near by.

    PBOC does it again

    Today's USD/JPY move replicates the action seen on Wednesday at 1.15 GMT Yuan fix, as the PBOC decided to weaken the Yuan once again today, setting the USD/CNY mid-point at 6.5646 vs yesterday's fix of 6.5314 and close at 6.555. The PBOC will also inject 70bn yuan via 7-day reverse repos today, which represents the largest net weekly injection in 11 months.

    USD/JPY key levels

    On the downside, 118/00 is a massive key support, with a break lower exposing, potentially, a decline towards 116.00, lowest from August 2015. On the upside, 118.50 now becomes resistance ahead of 118.75 (sequence of highs intraday) followed by round number 119.00. The conditions remain very volatile, with the underlying trend unambiguously bearish. Option players are also reflecting these views by increasing the premiums to buy Yen calls vs puts as implied volatility remains at hefty levels.
    For more information, read our latest forex news.
     

Share This Page