USD/JPY Now Approaching 108.00 Handle
JPY’s rally continues without break, with USD/JPY pair now eyeing 108.00 levels. The sell-off is weighing over majors via weakness in JPY crosses.
JPY rally hurts majors
Yen rally and the resulting losses in cross like EUR/JPY and GBP/JPY is pushing major pairs – EUR/USD and GBP/USD lower. Bank of Japan’s reluctance to intervene amid falling rate hike bets has given JPY bulls a free hand.
The momentum is so strong that even the gains in the equity markets are unable to halt Yen’s ride. There is little possibility of a turnaround, given the data docket is thin. Only technical factors – oversold indicators could come into play and trigger a wave of correction.
USD/JPY Technical Levels
The spot currently trades around 108.18. The immediate support is seen around 108.00, under which the spot could extend the drop to 106.65 (50% of 2011 low-2015 high). On the other hand, a break above 109.34 (hourly chart resistance) would expose 110.00 levels.
(Market News Provided by FXstreet)