USD/JPY now approaching 108.00 handle

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    JPY’s rally continues without break, with USD/JPY pair now eyeing 108.00 levels. The sell-off is weighing over majors via weakness in JPY crosses.

    JPY rally hurts majors

    Yen rally and the resulting losses in cross like EUR/JPY and GBP/JPY is pushing major pairs – EUR/USD and GBP/USD lower. Bank of Japan’s reluctance to intervene amid falling rate hike bets has given JPY bulls a free hand.

    The momentum is so strong that even the gains in the equity markets are unable to halt Yen’s ride. There is little possibility of a turnaround, given the data docket is thin. Only technical factors – oversold indicators could come into play and trigger a wave of correction.

    USD/JPY Technical Levels

    The spot currently trades around 108.18. The immediate support is seen around 108.00, under which the spot could extend the drop to 106.65 (50% of 2011 low-2015 high). On the other hand, a break above 109.34 (hourly chart resistance) would expose 110.00 levels.
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