“¢ A steep fall in equities prompts some aggressive safe-haven buying. “¢ Renewed USD selling further accelerates the downward momentum. “¢ Technical studies point to an extension of the ongoing downfall. The USD/JPY pair struggled to preserve early gains and has now drifted into negative territory for the fifth consecutive session. A steep decline in the US equity markets boosted the Japanese Yen’s safe-haven demand and was seen as one of the key factors behind the pair sudden collapse of around 45-50 pips in the past hour. Adding to this, a fresh wave of US Dollar selling since the early North-American session, following today’s uninspiring release of US PPI figures for September, further collaborated to the pair’s heavily offered tone. The pair tumbled to two-week lows but now seems to have stabilized near the 112.85-80 region, albeit a follow-through weakness, led by some fresh technical selling, remains a distinct possibility. Hence, it would prudent to wait for a sustained move back above the 113.00 handle before confirming that the near-term selling pressure is already over and the pair is set to resume with its prior appreciating move. As Valeria Bednarik, FXStreet’s own American Chief Analyst writes: “The pair has lost the positive momentum seen late September, despite US government bond yields, soared to multi-year highs, something quite significant in terms of future trend. The soft tone of equities, undermined by political woes, add pressure on the pair.” Technical outlook Valeria further adds: “The 4 hours chart shows that the pair has been struggling for direction around a bullish 100 SMA since Monday, a sign that speculative interest is not sure on where to go next. Technical indicators in the mentioned chart, however, remain within negative levels, the Momentum directionless and the RSI recovering alongside price, currently at 44. The pair has no signs of an upcoming steeper recovery, as it would need to accelerate through 113.60 to enter bullish ground, while a break below 112.75 should skew the risk toward the downside.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Wall Street collapses as trade war fears reemerge on Treasury Secretary Mnuchin’s comments FX Street 4 years "¢ A steep fall in equities prompts some aggressive safe-haven buying. "¢ Renewed USD selling further accelerates the downward momentum. "¢ Technical studies point to an extension of the ongoing downfall. The USD/JPY pair struggled to preserve early gains and has now drifted into negative territory for the fifth consecutive session. A steep decline in the US equity markets boosted the Japanese Yen's safe-haven demand and was seen as one of the key factors behind the pair sudden collapse of around 45-50 pips in the past hour. Adding to this, a fresh wave of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
