USD/JPY: risk of downside resuming below 109.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY is a less active open today ahead of the Chinese trade data later in the session.

    The action took place overnight when USD/JPY rose from 108.20 to as high as 108.79 with traders covering long Yen positions on the back of further verbal intervention from Japanese officials trying to put a pause the continued strength in the Japanese currency.

    Yen soft on risk appetite - Scotiabank

    The Yen has been a one way street since January's initial bid and the continuation below the 116.00 handle. However, USD/JPY has started to consolidate this month, forming a correction of the 29th March sell-off.

    USD/JPY levels

    Valeria Bednarik, chief analyst at FXStreet explained that in the 4-hours chart, however, the pair presents a slightly positive tone, as the Momentum indicator is crossing its 100 level towards the upside, whilst the RSI indicator stands flat around 50, suggesting the pair may advance further, particularly on a recovery above 108.90 the immediate resistance. 109.20 R3 would be next level while failures below 109 open risk towards 108.20 and a break of near term channel support.
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