USD/JPY: Downside Remains Most Compelling Scenario?
USD/JPY is currently keeping with the better offered theme in the start
of the week within the Tokyo open. The price has been pressured below
the 112 handle on a series of days in the red and today, the price has
broken below the 108 handle to score a low of 107.87 so far at the time
of writing.
As analysts at Brown Brothers Harriman explained, the
yen has been a tear. " It rose 2.85% last week and is up a whopping
11.6% since the BOJ surprised the world by adopting negative interest
rates at the end of January. The dollar fell to nearly JPY107.65 before
stabilizing ahead of the weekend".
Yen is Over-Stretched - BBH
USD/JPY levels
USD/JPY
remains with a bearish bias with a head and shoulders pattern on the
weekly bar charts projects toward JPY107, while the 38.2% retracement of
the Abe-inspired yen decline, is found near JPY106.80, as noted by the
analysts at Brown Brothers Harriman. On a correction of the downtrend
commencing at 112.00, the 20 dma is located at 108.47 while 109.09 is
the most recent high scored on the 8th April guarding 6th April high of
109.87.
(Market News Provided by FXstreet)
