USD/JPY Hits Fresh Lows Under 109.00 and Rebounds
to the downside despite some US dollar strength in the market. During
the American session broke below 109.00 (previous daily low) and dropped
to 108.89, hitting a fresh low.
Afterwards, it rebounded, rising back above 109.00. The rally was capped by the 20-hour moving average that stands at 109.30. Currently, the pair trades at 109.15, marginally lower for the day.
USD/JPY recovers but…
Greenback is retreating against the yen on Thursday after reaching during the Asian session at 109.55, the highest level in a week after a 150-pips rally from Monday’s lows.
“USD/JPY has recently pulled back to the 109 level due to relaxing in USD selling and JPY buying. JPY non-commercial sector long positions at the CFTC are still at recent highs, and some investors may pull back. March US retail sales did not encourage USD buying. Fundamental and underlying flows still point to a USD/JPY drop”, said analysts from The Bank of Tokyo-Mitsubishi UFJ.