USD/JPY tumbled to fresh
six month low, down for the day with 0.85 % and current market price 107.65.
Overnight the Domestic
Corporate Goods Price Index figures for
January were released from Japan, which met the markets
expectations, but failed to influence price movement. The following speech of Governor Kuroda
started to boost the Japanese Yen on the back up of
reduced demand of greenback. Kuroda confirmed
that BOJ will maintain
QE until inflation reaches 2.0% although the
central banks lately act opposite on his works. What comes more interesting is
that the PM Abe didn’t clarify if the Governor will keep his post.
Technically the short term outlook for the pair remains bearish.On the four
hour time frame the price is developing well below its bearish moving averages.
RSI and stochastic are located within extreme oversold territories and both are
keeping strong downward slopes.
The USD/JPY conquered the support level at 107.70 and now the pair is poised to
extend its decline towards immediate support, provided by last Spetember’s low at 107.31. If bears succeed to
breach this level, then doors are opened for testing 106.80.
No comments:
Post a Comment