FxWirePro: Yen Buying Dominates Amid Risk-Off, USD/JPY Hits Fresh 2-Week Low, Good to Sell Rallies

FxWirePro: Yen Buying Dominates Amid Risk-Off, USD/JPY Hits Fresh 2-Week Low, Good to Sell Rallies

2 June 2016, 07:21
Roberto Jacobs
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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 

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