USD/JPY: Loss of 109.00 Accelerates Downside

USD/JPY: Loss of 109.00 Accelerates Downside

11 May 2016, 05:20
Roberto Jacobs
0
10

USD/JPY: Loss of 109.00 Accelerates Downside

USD/JPY has broken bellow the 109.00 round number at the open of trading in China, with an acceleration towards 108.80 seen afterwards, as risk sentiment worsens.

Volatile open of Chinese markets

The open of Chinese stocks has seen the China futures (A50 FTSE - benchmark for investors to access the China domestic market through A Shares – ) trade down by 0.4%, while the Shanghai Composite is still up 0.22% but well off its highs. The loss of 109.00 in USD/JPY has allowed Gold to catch a solid bid while Nikkei is under pressure, testing the 16,600 handle.

USD/JPY technicals

Adam Button, writing for AshrafLaidi.com, noted: "USD/JPY climbed for the fifth time in the past six days on Tuesday. The pair is nearing the 61.8% retracement of the post-BOJ drop. That technical level is at 109.49."

Valeria Bednarik, Chief Analyst at FXStreet, notes in today's technical report: "In the 4 hours chart, the technical indicators maintain strong bullish slopes, despite being in extreme overbought levels, suggesting the rally may extend up to 110.60, a major static resistance level."


fxs_logo_news.png

Share it with friends: