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USD/JPY sell-off extends in Europe, 108.50 tested

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The USD/JPY pair keeps falling post-Europe open, with the bears completely in control and now look to test the next psychological support placed at 108.00.

    USD/JPY: Yen rises further as oil recovery stalls

    The bullish grip on the Japanese currency tightened further in the European session, as the ongoing rally in the oil prices stalled, which spooked investors as they now believe that the rebound in oil prices could be temporary. At the time of writing, USD/JPY hovers near fresh eighteen-month lows reached at 108.52 last minutes, down -1.09% on the day.

    More so, the major ignored the broad based recovery seen in the US dollar and remains relentlessly offered into the yen strength, after a number of Japanese officials stated that any fx market intervention may not be expected. The rise in the yen sped up after Japanese PM Shinzo Abe said yesterday that countries should avoid weakening their currencies with arbitrary intervention.

    Next on tap remains the US jobless claims for the major ahead Friday’s Yellen’s speech scheduled in the Asian morning.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 109.90/110 (daily pivot/ round n umber). A break above the last, the major could test 110.44/46 (5-DMA/ daily R1). While to the downside, the immediate support is seen at 108.50 (daily S2/ psychological levels) and below that at 108 (multi-month lows).
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