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
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 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)