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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