Today's soft US data releases weighed on US yields, which helped to further narrow the US-Japan spreads on the long dated bond yields. In turn, the USD/JPY gave up its entire gains from the day before when it was boosted by the JOLTS data. Next move could be defendant on the nonfarm payrolls report on Friday.
From a technical point of view, this is text book stuff. Price is testing a key area of support at the time of writing, between 142.00 to 142.70, as marked in grey on the chart. This zone has provided strong support on multiple occasions, preventing rates from sliding towards 140.00 zone. Now the more a level or an area is tested, the more likely it will break down. Will we see a break here in the next few days? Or will support continue to hold, as improving risk appetite gives US dollar some breathing space?
Well, the pair is down quite a lot on the session, so i wouldn't rule out a bounce here heading into US close. But the trend direction is clear: bearish.
By Fawad Razaqzada, market analyst with FOREX.com
From a technical point of view, this is text book stuff. Price is testing a key area of support at the time of writing, between 142.00 to 142.70, as marked in grey on the chart. This zone has provided strong support on multiple occasions, preventing rates from sliding towards 140.00 zone. Now the more a level or an area is tested, the more likely it will break down. Will we see a break here in the next few days? Or will support continue to hold, as improving risk appetite gives US dollar some breathing space?
Well, the pair is down quite a lot on the session, so i wouldn't rule out a bounce here heading into US close. But the trend direction is clear: bearish.
By Fawad Razaqzada, market analyst with FOREX.com
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.