USD/JPY: Loss of 109.00 Accelerates Downside
USD/JPY
has broken bellow the 109.00 round number at the open of trading in
China, with an acceleration towards 108.80 seen afterwards, as risk
sentiment worsens.
Volatile open of Chinese markets
The
open of Chinese stocks has seen the China futures (A50 FTSE - benchmark
for investors to access the China domestic market through A Shares – )
trade down by 0.4%, while the Shanghai Composite is still up 0.22% but
well off its highs. The loss of 109.00 in USD/JPY has allowed Gold to
catch a solid bid while Nikkei is under pressure, testing the 16,600
handle.
USD/JPY technicals
Adam Button,
writing for AshrafLaidi.com, noted: "USD/JPY climbed for the fifth time
in the past six days on Tuesday. The pair is nearing the 61.8%
retracement of the post-BOJ drop. That technical level is at 109.49."
Valeria Bednarik, Chief Analyst at FXStreet, notes in today's technical report:
"In the 4 hours chart, the technical indicators maintain strong bullish
slopes, despite being in extreme overbought levels, suggesting the
rally may extend up to 110.60, a major static resistance level."
