USD/JPY losing altitude, breaches 116.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The risk aversion continues to dominate the session today, now sending USD/JPY below the 116.00 handle, or session lows.

    USD/JPY in multi-month lows

    The demand for the safe haven JPY keeps gathering traction today, taking the pair to levels last seen in December 2014 near 115.50 against a backdrop of increasing risk-off trade.

    Another sharp sell-off in the commodities space has been also collaborating in the sentiment since early trade, giving further legs to the JPY-rally.

    Data wise in the US, the Fed’s Labor Market Conditions Index has missed expectations for the current month. Furthermore, Chairwoman Yellen’s testimony on Wednesday will be the main attraction in an otherwise uneventful week.

    USD/JPY levels to watch

    As of writing the pair is retreating 1.01% at 115.78 with the next support at 112.41 (monthly low November 2014) followed by 105.18 (monthly low October 2014). On the flip side, a breakout of 118.09 (20-day sma) would target 119.95 (55-day sma) en route to 120.46 (100-day sma).
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