Tuesday, 31 January 2017

USD/JPY Bearish Risk Ahead

The USD/JPY pair plummeted  today having marked around 1.15% down slide and posted intraday low at 112.07. A very short recovery was seen during the Asian session when the pair posted the daily high at 113.97. The latest decision of BOJ to keep its monetary policy unchanged modestly supported the Japanese Yen, but only in the early trading hours when the pair was last seen around 114.00 level. Meanwhile today the US Dollar weakness was fuelled by the negative numbers on Consumer Confidence results. 
In terms of technical levels, the risk remains to the downside. The pair is currently trading around 113.00 level, well below the 100-day SMA. As seen on the four-hour chart the technical indicators present bearish scenario. RSI is placed around 38 level, slightly recovering from oversold area. Stochastic is showing extreme oversold conditions and is displaying lack of momentum.
Overall the pair is trending to downwards and is vulnerable to test 110.00 area.


 

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