USD/JPY Hits 18-Month Low of 107.00
The USD/JPY pair extended its slide further during European session and has now dropped to 107.00 level, hitting an 18-month low level.
In
the backdrop of Thursday's sharp fall of over 3%, Friday's fall could
be pointing to extended period of weakness for the pair. The pair on
Thursday took a sharp knock as investors were disappointed by the Bank
of Japan's lack of action over announcing fresh stimulus measures. The
pair is now headed for its third consecutive months of decline.
Technical levels to watch
On
the downside, the pair might be eyeing 107.00 round figure mark to
extend some immediate support. However, given the intensity of the fall
the pair seems unlikely to hold 107.00 and extend its downfall towards
its next major support near 105.50-60 area with some intermediate minor
support near 106.00 mark.
On the upside, attempts of recovery
might now confront immediate resistance near 107.65-75 area. This is
closely followed by a strong resistance near 108.00 mark. Any further
recovery beyond 108.00 mark might now be capped near 108.25-30 area and
only a decisive strength above this strong resistance might increase
prospects of further near-term recovery for the pair.
