USD/JPY Current price: 110.69
- The US Federal Reserve gave USD/JPY traders a reason to react.
- Japanese banks will remain closed amid a local holiday.
The USD/JPY pair spent the first half of the day trading within familiar levels, around 111.40, as despite risk aversion dominated the Asian session, demand for the JPY remained subdued. As explained in previous updates, Japanese data has been highly disappointing, bolstering concerns about the economic developments in the country. Furthermore, BOJ's Governor Kuroda said that the central bank keeps supporting the local economy through the yield curve control, once again expressing concerns about Chinese economic developments. But the Fed provided the catalyst the market was looking for, resulting in the pair plummeting to 110.53, its lowest for this March. Japanese markets will be closed this Thursday on a local holiday, and therefore, activity could be reduced ahead of London's opening.
From a technical point of view, the pair is now bearish in the short-term, as in the 4 hours chart, it broke below its 100 and 200 SMA, below this last for the first time since early February. Technical indicators in the mentioned chart head south almost vertically, now in oversold territory, as the pair lost roughly 100 pips in a couple of hours. The decline is now set to continue as long as the pair remains below 111.00.
Support levels: 110.45 110.10 109.80
Resistance levels: 111.00 111.45 111.80
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD struggles near one-month low despite subdued USD demand
AUD/USD consolidates its recent heavy losses and seems vulnerable to sliding further amid worries about the slowing Chinese economy. Unexpected interest rate cuts by the People's Bank of China on Monday might also continue to undermine the China-proxy Aussie. Meanwhile, dovish Fed expectations keep the USD bulls on the defensive.
EUR/USD trapped below 1.09 as quiet Monday markets churn
EUR/USD churned on Monday just below 1.0900 as the new trading week kicks things off on a notably light note. Meaningful data remains limited for the first half of the trading week, leaving Fiber traders to shuffle in place as investors await Wednesday’s key PMI figures for both the EU and the US.
Gold price remains on the defensive below $2,400 mark, over one-week low
Gold price struggles to attract any meaningful buyers during the Asian session on Tuesday and languishes near a one-and-half-week low touched the previous day. Biden’s withdrawal from the US Presidential race and unexpected interest rate cuts by the People's Bank of China boosted the global risk sentiment on Monday.
SEC gives final approval for Ethereum ETFs to begin trading
The Securities and Exchange Commission approved the S-1 registration statements of spot Ethereum ETF issuers on Monday, making it the second digital asset ETF to go live in the US, according to the latest filings on its website.
Commodity FX gets no help from higher US equities
Markets were all over the place on Monday. US equities put in a decent recovery, though this did nothing to help beaten down commodity FX, with the Australian Dollar, New Zealand Dollar and Canadian Dollar all getting hammered.