USD/JPY consolidating back on 117 after sharp losses below

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - USD/JPY has made a comeback after opening in supply and making its way below the 117 handle. However it is not a convincing bid currently while markets are in risk-off mode in light of the Chinese crisis.

    The Yen has been on the march since 2016 opened, 7 cents or thereabouts in the green while traders, observers and investors put the Fed and dollar to the side in the cash market a flight to safety. However, it will not be long before Central Banks start to comment on the Yen and perhaps while the BoJ's target of 2% inflation is dwindling away while oil is forever declining, the Yen may not be able to run off with the trophy before the dollar comes back into vogue.

    USD/JPY levels

    However, technically, there is still some downside to be had. 116.16, the low set in August 2015 is compelling for this week on a break and close below the 117 handle today. Then, the 114.00/113.95 zone cannot be ruled out with a break of the weekly 100 SMA and ahead of the base of the weekly cloud at 113.47.
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