USD/JPY Weaker Below 111, Yen Gains Amid Risk-off

USD/JPY Weaker Below 111, Yen Gains Amid Risk-off

5 April 2016, 06:42
Roberto Jacobs
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USD/JPY Weaker Below 111, Yen Gains Amid Risk-off

The USD/JPY pair extends its bearish momentum for the third consecutive session this Tuesday, mainly driven by rising demand for the safe-haven yen amid persistent risk-off trades.

Yen‘s recent appreciation puts BOJ under pressure

The dollar-yen pair extended to the downside and fell to the lowest levels in thirteen days as markets continue to bid up the Japanese currency in response to the extension of the risk-off sentiment into Asia as both the stocks and oil markets continue to dive. At the time of writing, USD/JPY recovers to 110.93, still down -0.37% on the day, after having posted fresh thirteen-day lows at 110.78 in early trades.

Moreover, a broadly weaker US dollar following weak US factory orders and labour market conditions data added to the bearish pressure surrounding the major.
Meanwhile, the USD index drops -0.06% to 94.55 levels.

Looking ahead, the sentiment on the equities will continue to dominate the yen moves and hence, will have major impact on the USD/JPY pair. Besides, the US dataflow will also provide fresh incentives to the pair.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 111.26/28 (1h 20-SMA/ Daily High). A break above the last, the major could test 111.62/64 (5-DMA/1h 50-SMA). While to the downside, the immediate support is seen at 110.78/63 (Daily low & S2) and below that at 110 (key support).

(Market News Provided by FXstreet)

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