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USD/JPY hits fresh daily lows, still above 113.00

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The yen gained momentum in the market as stocks in the US moved sharply off session highs. USD/JPY broke below 113.35/40 and dropped to 113.24 hitting a fresh daily low.

    The pair is trading at 113.25, down 0.60% for the day, with a bearish tone. So far it has been able to hold above 113.00 and also on top of 113.10/20 (March 2, 3 & 4 low). A break lower could open the doors for an extension of the decline.

    “The short-term outlook keeps favoring the downside, as the price in the 1 hour chart is currently developing below its 100 SMA, whilst the technical indicators in the same time frame have been unable to advance beyond their mid-lines, and are currently resuming their declines”, said Valeria Bednarik, Chief Analyst at FXStreet.

    According to her, the 4-hour chart shows a neutral stance, with the “price a handful of pips above a horizontal 100 SMA, and the Momentum indicator hovering around its 100 level. The RSI indicator however, keeps heading south around 46, supporting additional declines on a slide below the 113.10 level, the immediate support.”

    US stocks erased gains

    The Dow Jones is hovering around 17,000 unchanged, after hitting earlier 17,100. The Nasdaq is falling 0.77% and the S&P is down 0.33%. In Europe, main stocks indexes finished with modest losses.

    Among commodities, crude oil is about to post the highest close of the year near $38.00 a barrel (WTI), as it rises more than 5%. Gold is up marginally, currently hovering around $1267.00 an ounce.
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