Thursday 18 August 2016

USD/JPY

On Wednesday for first time since June the US dollar dropped below the psychological ¥100 level. The current weakness of the US economy and the strong bearish trend in USD/JPY set selling pressure over the pair. The fact that USD/JPY still is standing around 100 and closed at its lowest daily level indicates that the direction is in favor of the Asian currency. 
Yesterday USD/JPY tried to push higher, reached an intraday high at ¥101.15, but later on plummeted down and closed lower at ¥100.24. During today’s early trading hours hit ¥99.63. 
The expectations are bearish for testing the area  99.50 - 98.80. The nearest resistance is seen at ¥101.15. A clear break above it could take price to neutral zone for testing ¥100.65 or higher, but yet at this phase bearish scenario is preferable.




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