USD/JPY drops back below 112.00

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    USD/JPY remains among the most volatile crosses in the market and during the last hours it dropped almost a hundred pips. The pair was moving off session lows but if found resistance at 112.70 and turned again to the downside as stocks in the US reached fresh lows.

    Earlier the pair bottomed at 110.96 and then jumped almost 200 pips in a few minutes, hitting levels above 113.00, triggering rumors about an intervention from the Bank of Japan to halt the appreciation of the yen.

    In the US, the Dow Jones plummets 1.80% and the Nasdaq falls 1.16%. European stock indexes remain above daily lows but about to end with declines from 2 to 4%. Risk aversion increased the demand for the yen and US and German bonds.

    USD/JPY technical levels

    Currently the pair is trading at 118.80/90, down 150 pips from yesterday’s closing price and about to post the eighth daily decline out of the last nine trading days.

    To the upside, resistance levels now might lie at 112.45/50 (20-hour moving average), 113.15/20 (American session high) and 113.60 (daily high). On the opposite direction support could be seen at 111.70 (intraday level) and 110.95/111.00 (daily low / psychological). A consolidation below 110.90 would expose 110.00.
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