USD/JPY eyes 116.00 as risk aversion returns

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - After moving in ranges between 116.90 and 116.40, even unaffected by US economic data, USD/JPY broke to the downside and approached daily lows.

    The pair dropped recently to 116.19 and it remains near the lows, with bearish momentum rising. Earlier it bottomed at 115.96, hitting the lowest level in a year, before rebounding.

    Wall Street extends losses

    The yen is among the best performers in the currency market on Wednesday, favored by risk aversion. Stocks declined sharply in Asia. After Wall Street opening bell, US main indexes trimmed losses but then lost strength and recently broke below previous lows.

    The Dow Jones is at the lows, falling 420 points or 2.62% while the Nasdaq declines 3.10%. In Europe, all indexes are down more than 3%. Crude oil (WTI) trades at fresh decade low levels, near $28.00.

    The environment boosted the yen and also gold prices. The Japanese currency approached daily highs and pushed EUR/JPY to new lows below 127.00.
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