USD/JPY Back to Daily Lows
USD/JPY attempted
to move off daily lows during the American session and after GDP data
from the US, but the recovery was short-lived and price is back near
108.00.
The pair is consolidating significant daily losses (down
3.00%) while it continues to test the 108.00 area. A daily close around
current levels would be second lowest since October 2014.
USD/JPY under pressure
Earlier
USD/JPY lost almost 400 pips, falling from 111.70, until it bottomed at
107.90, level located modestly above 2016 lows. The yen jumped in the
market after the Bank of Japan decided to leave monetary policy
unchanged. Then US economic data gave some support to the US dollar but
it found resistance 108.70 and retreated.
“Against the backdrop
of a dovish Fed and prospective BoJ easing at its June meeting (ahead of
elections in July), we think USD/JPY will remain under pressure. 107.63
represents crucial support but a break below this threshold will
strongly augur for a test of 105.44”, said analysts from TD Securities.
