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11 Dec 2015
USD/JPY: breaking to the downside on risk-off
FXStreet (Guatemala) - USD/JPY's downside momentum has picked up, penetrating the 4hr 200 SMA at 122.46 and smashing the doors down of the 122 handle, through the 20 DMA at 121.92 and marking fresh lows.
The market appears to be picking up safe haven assets into the weekend on the back of weaker stocks and pressure on commodities ahead of the FOMC week next week where a dovish hike might be expected from Yellen and co.
The BoJ will release its latest tankan survey on business conditions next Monday and the market is expecting the survey to reveal slightly weaker current conditions for business, but a small upturn in the outlook component, explained analysts at Scotiabank.
USD/JPY levels
The analysts at Scotiabank explained that USD/JPY short‐term technicals are bearish, with the USD/JPY's slide from the upper 123 area and below support (now resistance) at 122.25 should really extend further. "Failure to recover back above the 200‐day MA (121.60) should see spot losses extend near‐term." The deep target is 118.00, the support from 20th August lows.
The market appears to be picking up safe haven assets into the weekend on the back of weaker stocks and pressure on commodities ahead of the FOMC week next week where a dovish hike might be expected from Yellen and co.
The BoJ will release its latest tankan survey on business conditions next Monday and the market is expecting the survey to reveal slightly weaker current conditions for business, but a small upturn in the outlook component, explained analysts at Scotiabank.
USD/JPY levels
The analysts at Scotiabank explained that USD/JPY short‐term technicals are bearish, with the USD/JPY's slide from the upper 123 area and below support (now resistance) at 122.25 should really extend further. "Failure to recover back above the 200‐day MA (121.60) should see spot losses extend near‐term." The deep target is 118.00, the support from 20th August lows.
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