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USD/JPY hits fresh lows at 94.19 ahead of Europe

FXstreet.com (Barcelona) - The USD/JPY has extended its downside in post-lunch trading in Tokyo, with the trading now developing at the 94.40 following a new 3-month low of 94.19 after 94.50 support finally gave up.

Bearish picture upgraded

The break of support at 94.50, tested in 3 occasions through the 5 minutes charts before the sustained weakness got prolonged, suggests that further downside scope is now allowed. On the upside, 94.50 is expected to see offers comeback ahead of proven resistance at 94.90, which today managed to held the USD/JPY mild recovery post first initial sell-off.

USD/JPY technical set up continues to deteriorate as bears maintain control

The USD/JPY has suffered steep losses over the last few days, with many analysts pointing towards the Bank of Japan’s decision to hold keep current monetary policy unchanged and their most meeting as a main reason for the declines. However, not all analysts are so sure about this, with same saying the global risk aversion theme and sharp declines in the equity market have also had an effect on the USD/JPY as previous ‘risk on’ trades being to unwind.
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