USD/JPY Sell-Off Extends in Europe, 108.50 Tested
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).
(Market News Provided by FXstreet)
