USD/JPY Forecast: Fresh Lows on Risk Aversion
Fresh lows on risk aversion. The USD/JPY pair continued declining this Thursday, down below the 109.00 mark ahead of the US opening and after ECB's economy policy decision. In the news, Moody's rating agency said that Japan's sales tax hike delay is credit negative, making fiscal goals more challenging, not really good news for Germany. Anyway the yen's advance is being backed by falling equities and the 1 hour chart shows that the price is well below its moving averages, whilst the technical indicators have lost downward strength but remain within bearish territory. In the 4 hours chart, the technical indicators maintain their sharp bearish slopes near oversold levels, whilst the price is currently being capped by the 200 SMA, now around 109.20, in line with further slides for today.
Support levels: 108.70 108.30 107.95
Resistance levels: 109.20 109.50 110.00