USD / JPY Current Price: 108.43
- Disappointing US data and the Fed’s announcement of further easing weighed on the dollar.
- Yields on US Treasuries declined slightly, adding pressure to the pair.
- The USD / JPY became bearish in the short term, a more pronounced decline expected once below 107.70.
The USD / JPY pair fell to 108.20, its lowest of the week, amid general weakness of the dollar, and despite Wall Street posted substantial gains. A mix of weak US data and the US Federal Reserve announcing a new set of facilities weighed on the greenback. Yields on US Treasuries eased, with the yield on the 10-year note currently at 0.72% and adding pressure to the pair.
At the start of the day, BOJ Governor Kuroda spoke at a meeting of the BOJ branch manager and spoke about the current global crisis, saying that policy makers would not hesitate to add a softening if necessary. Japan will publish the March producer price index and bank loans for the same month during the next Asian session.
USD / JPY Short-term Technical Outlook
USD / JPY reduced all of its weekly gains before opening in Asia and became bearish in the short term. The 4-hour chart shows that the pair has gone below its 20 and 100 SMA, which remain a few pips below the 23.6% retracement of its last daily advance. Technical indicators have moved into negative territory, although the downward force is currently limited. The next relevant support is 107.70, the 38.2% retracement of its last bull run.
Support levels: 108.00 107.70 107.25
Resistance levels: 108.65 109.00 109.40
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