FxWirePro: USD/JPY Slips Below 108 Handle After Large Bearish Gap down Open
- Yen was a big gainer on the day, USD/JPY opens with a large bearish gap down of over 0.70%, slips below the 108 handle.
- News that OPEC and non-OPEC ministers concluded the Doha talk without an agreement heightened uncertainty in the markets and thus risk-off.
- Asian stocks dive on failed Doha deal, Nikkei down -3%. Benchmark S&P/ASX 200 index was largely indifferent to the oil news, drops -0.25% to 5,144.
- The Chinese equities also down, with the benchmark Shanghai Composite index falling -1.39%, the CSI300 index down -1.15%, while Hong Kong’s Hang Seng fell -0.92% to trade around 21,140 levels.
- The major hit lows of 107.83 before paring some losses to currently trade around 108 levels.
- Japan’s chief cabinet secretary Suga was on the wires, said that the government will provide necessary financial support for earthquake relief.
- Suga refrained from commenting on whether quake will impact timing of sales tax hike decision, but added that the govt can utilize reserved funds of 350 bln yen as needed.
- Immediate support for the pair is seen at 107.66 (Apr 7th lows), while resistance on the upside is seen at 108.44 (Apr 11th highs).
- Momentum is heavily bearish, only breaks above 108.90 could see bearish invalidation.
Recommendation: Good to sell rallies around 108.10/15, SL:108.90, TP: 107.65/107/106.80
The material has been provided by InstaForex Company - www.instaforex.com