USD/JPY outlook: Sharply down, markets suspect intervention
|USD/JPY
USDJPY was sharply down on Wednesday (down 1.3% during the European / early US session), with markets suspecting another intervention, after Japan’s authorities intervened in the market and pushed yen away from the lowest levels in nearly four decades..
Although comments from top officials were not clearly pointing to intervention, the size and the pace of the latest move suggests that authorities continued to buy yen, in attempts to further strengthen weakening currency.
Fresh drop is pressuring pivotal Fibo support at 156.04 (38.2% of 146.48/161.95), with firm break here to add to negative outlook and allow for stronger correction towards 100DMA (155.04) and Fibo 50% (154.21).
Strong negative momentum and MA’s (10/20/55) in bearish configuration support the notion, wit broken 55DMA (157.55) to ideally cap.
Res: 157.55; 158.30; 158.86; 159.52.
Sup: 156.04; 155.71; 155.04; 154.21.
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