USD/JPY Off Day’s High but Holds in Green at 107.70

USD/JPY Off Day’s High but Holds in Green at 107.70

7 June 2016, 08:34
Roberto Jacobs

USD/JPY Off Day’s High but Holds in Green at 107.70

The Japanese currency has failed to extend its last week risk-aversion led gains against the US counterpart, with the USD/JPY moving higher for second consecutive day to inch closer to 108.00 handle.

After an initial downtick to the vicinity of 107.00 handle, the pair managed to recover swiftly as the risk-on sentiment surrounding equity markets seems to weight on the Japanese currency. However, the US Dollar is yet to find a sustainable buying interest as the probability of a rate increase in June/July had declined significantly after Friday’s awful jobs report.

With a relatively lighter economic calendar, the pair would continue to take cues from the prevalent risk sentiment in global equity markets.

From technical perspective, the pair is sustaining its move above 23.6% Fibonacci retracement level of 111.45-106.37 last week's down-leg and hence, is likely to extend the near-term recovery trend.

Technical levels to watch

On a sustained move above 108.00 handle, the pair seems to immediately dart towards 38.2% Fibonacci retracement level of 108.35-40 before extending its recovery trend further towards 109.00 handle, nearing 50% Fibonacci retracement level.

On the flip side, weakness back below 23.6% Fibonacci retracement level support near 107.50 level, the pair seems to head back towards 107.00 handle, below which the pair seems to resume its prior weakening trend and aim towards retesting last week low support near 106.37 ahead of May lows support near 105.55.


Share it with friends: