During the Asian session today the USD/JPY pair marked
a weekly high at 110.95 but the situation changed after the FOMC minutes, which
led to a broad-based US Dollar sell-off. The policymakers exposed their
concerns about the inflation’s slowdown. So the next rate hike depends on the
targeted 2%. On the other hand the greenback still suffers after Trump’s
ridiculous racist incidents. Consequently above event supported the Japanese
yen.
The four-hour time frame is showing that the price has
crossed to below its 100-day SMA while the 20-day SMA is keeping its course to
north. RSI and stochastic retreated from extreme overbought territories and
currently both are showing strong momentum towards the downside, although yet
are above the mid-lines.
Technically speaking the pair is poised to extend its
decline, especially in case of breaking the psychological
level at 100.00. In this scenario next support levels are seen at 109.55 and
108.75.
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