USD/JPY Unstoppable, Extends Decline to 107.65

USD/JPY Unstoppable, Extends Decline to 107.65

7 April 2016, 18:39
Roberto Jacobs

USD/JPY Unstoppable, Extends Decline to 107.65

The yen continues to rise across the board and hit a new 17-month high versus the US dollar. USD/JPY turned to the downside after the beginning of the American session and recently broke below previous lows.

It bottomed at 107.65, the lowest since October 2014; then it rebounded but so far it has been unable to rise back above 108.00. The pair is falling for the fifth day in a row. Speculation about a possible intervention from Japanese authorities climb as the yen soars in the market but so far, price action is showing a normal volatility scenario.

In the US stocks are falling sharply, giving some extra upside momentum to the yen. The Dow Jones is down 0.80% and the Nasdaq falls 1.05%; US bond yields were falling and gold prices were rising showing a flight for safety.

USD/JPY technical levels

To the upside, resistance levels might now lie at 108.20 (intraday level), 108.70 (20-hour moving average) and 190.30 (Apr 6 low). On the downside, support could be seen at 107.60/65 (daily low) 107.35/40 (Oct 20 & 22, 2014 high) and 107.00 (psychological).

(Market News Provided by FXstreet)

Share it with friends: