FxWirePro: Yen Buying Dominates Amid Risk-Off, USD/JPY Hits Fresh 2-Week Low, Good to Sell Rallies
- USD/JPY slipped below the 109 handle to hit fresh 2-week lows at 108.82.
- Yen extends gains for the third consecutive session as delay in sales-tax hike combined with the latest comments from BOJ's Sato keep the bids underpinned.
- BOJ’s Sato noted that the Japanese economy may avert recession, while adding that “it's unnecessary to persist in hitting 2% inflation target at all costs.
- The major dropped sharply below 109 handle to hit fresh 2-week lows at 108.82, before recovering some ground to now trade at 108.99.
- Focus now on the US ADP jobs data to provide some respite to the USD bulls ahead of the crucial US payrolls data due tomorrow.
- On the daily charts, USD/JPY has broken major support at 110 levels and has slipped below 21-DMA at 109.32.
- Technical indicators support further downside, Stochs and RSI are biased lower and MACD is on the verge of a bearish crossover on signal line.
Recommendation: Good to sell rallies around 109/109.10, SL: 109.60, TP: 108.50/108.25