USD/JPY: Heavy Selling Since Brussels Airport Explosion

USD/JPY: Heavy Selling Since Brussels Airport Explosion

22 March 2016, 09:06
Roberto Jacobs
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USD/JPY: Heavy Selling Since Brussels Airport Explosion

USD/JPY has lost the 112.00 handle, currently printing fresh lows for the day near 111.75, with the initiated selling being triggered by an explosion at Brussels airport, with several people reported dead.

Risk off benefits Yen

The explosion, which took place around 15 minutes after the Frankfurt open, has seen the European Stoxx 50 fall by as much as 0.5%, the SP500 futures are down by 0.3%, US 30-year Treasuries have caught a strong bid, with the Japanese Yen and the Swiss Fran the main beneficiaries.

USD/JPY technical picture

Technically, the impulsive decline off highs has now taken out support at 111.84, with subsequent acceptance below the line, suggesting that further downside, in line with the current bear momentum, is likely. Should the pair resume its descend, 111.70 (daily pivot) is next focus, followed by mid round number 111.50. On the upside, as long as 112.00 is defended, the arguments to sell strength remain valid. On the big scheme of things, the pair has been ranging between 112.20/40 and 110.80, with a break of either extreme necessary to set the next directional bias.

(Market News Provided by FXstreet)

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