USD/JPY: A death cross is upon us – OCBC
|USD/JPY extended its move lower, tracking decline in broad USD, OCBC Frances Cheung and Christopher Wong note.
The broader direction of travel for USD/JPY is to the downside
“Pair was last seen at 142.86. Bullish momentum on daily chart faded while RSI fell. Death cross formed with 50DMA cutting 200DMA to the downside. Risks skewed to the downside. Support at 142, 141.70 (Aug low). Resistance at 145.70 (21 DMA), 146.40 (23.6% fibo retracement of Jul high to Aug low) and147.20 (recent high).”
“Earlier in the week, BoJ Governor submitted a document to government panel, which reiterated that the BoJ would continue to raise interest rates if the economy and prices perform as expected by the BoJ.”
“Fed-BoJ policy shifts and growing pace of normalisation can bring about faster narrowing of UST-JGB yield differentials and this should continue to underpin the broader direction of travel for USD/JPY to the downside.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.