USD / JPY Current Price: 103.49
- The Japanese yen appreciated in a risky environment as the dollar continued to sell off.
- The US Federal Reserve increased pressure on the US currency after calling for a fiscal stimulus.
- USD / JPY turned bearish after crossing the 104.00 level, now heading towards 103.07.
USD / JPY fell to 103.43 its lowest since last March, after triggering stops just below the 104.00 figure. The pair fell despite a risky environment, with equities rebounding and government bond yields recovering. Yields on Treasuries have held steady at modest gains after the US Federal Reserve kept monetary policy unchanged, as expected. The USD / JPY, however, extended its daily decline by a few pips with the words of the Fed Chairman.
Japan released October’s Jibun Bank Services PMI earlier today, which stood at 47.7. The country will release September’s labor cash earnings, forecast at -2.2% year-on-year, and overall household spending for the same month on Friday, which is expected to have fallen 10.7% year-on-year earlier.
Short term technical outlook USD / JPY
USD / JPY is pressuring its daily lows, which are firmly bearish despite being oversold in the short term. The 4-hour chart shows that it has extended its decline below all of its moving averages, with the 20 SMAs accelerating south below the larger ones. Technical indicators, meanwhile, fell after a modest corrective advance, supporting another southward step for the next few sessions. The next relevant support is 103.07, the low set on March 12.
Support Levels: 103.05 102.70 102.25
Resistance levels: 103.95 104.30 104.70
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