USD/JPY: bulls in danger as bears test 100.00 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair traded as low as 99.93 this Tuesday, with subsequent bounces barely being enough for the pair to recover the 100.00 level.

Key Quotes:

"The Japanese yen held to its latest trend, as US Treasuries yields edged higher, with the 10-year benchmark up to 1.55%.  The release of a slightly encouraging  August flash Japan Manufacturing PMI, which came in at 49.6 from 49.3 in July, hardly affected the currency. Neither did news that the  government plans to spend 4.52 trillion yen to fund stimulus measures for the local economy under a second extra budget for fiscal 2016, according to government sources."

"The pair maintains a neutral stance in the short term, but remains dangerously close to the 100.00 critical support. In the 1 hour chart, the price is developing below a mild bearish 100 SMA, whilst the technical indicators inch higher within neutral territory. In the 4 hours chart, technical indicators are flat around their mid-lines, while the 100 SMA has extended its decline above the current price and currently stands around 101.10."