- The anti-risk Yen picked up a bid likely due to signs of risk aversion in the financial markets.
- The S&P 500 futures and Asian stocks are reporting losses.
The USD/JPY is trading at 110.80, having clocked a session high of 111.06 – the highest level since May 22.
The decline from 111.06 to 110.80 could be associated with the risk-off tone in the S&P 500 futures and the Asian equities.
At press time, the S&P 500 futures are flashing red; down 0.20 percent as opposed to 0.20 percent gain seen in early Asia. Further, Asian heavyweights like Shanghai Composite and Nikkei are down more than 1 percent.
Looking ahead, the currency pair risks falling in the red as the European FX desks may buy JPY in response to German political uncertainty.
Bulls need to clear the falling trendline hurdle
The resistance of the trendline sloping downwards from the August 2015 high and December 2015 high is seen at 111.00, if cleared in a convincing manner, would add credence to last week’s bullish outside-day candle and confirm a long-term bearish-to-bullish trend change.
USD/JPY Technical Levels
Resistance: 111.00 (trendline hurdle), 111.40 (May 19 high), 111.65 (50% Fib of Dec 2016 high – March 2018 low).
Support: 110.59 (session low), 110.17 (200-day moving average), 109.84 (ascending 50-day moving average).
Share
