USD/JPY under heavy pressure, break below 111.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    USD/JPY continues to trade heavily bearish as Tokyo players come online, sending the pair down below the 111.00 handle after failed attempts to rebound past the 112.45 resistance area in the early stages, and with the Nikkei 225 also strongly sold, down 1.67%.

    Earlier on, the Bank of Japan published the minutes of its January meeting, when negative rates were introduced, with most members saying that there was heightening risk that global market volatility could hurt business sentiment, delay shift from deflationary mindset, adding that many members said it was appropriate to take additional steps to forestall risks. For a full summary, read here.

    Looking at the 4 hours chart, according to Valeria Bednarik, Chief Analyst at FXStreet: "The technical indicators corrected oversold readings, but have lost upward strength well below their mid-lines, in line with the shorter term outlook. The risk remains towards the downside, with another slide below 111.00 opening doors for a continued decline towards the 110.00 psychological support."
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