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16 May 2014
USD/JPY keeps pressure to the downside
FXStreet (Bali) - USD/JPY fell sharply during US hours, posting a new marginal 1-month low at 101.30 before a bounce snapped the rate back to life at 101.50.
Demand for US bonds benefits Yen
The buying of US bonds led to a sell-off in the US equity market, putting pressure on all Yen crosses, with the USD/JPY in particular continuing to see each rejection off 100.30 less convincing, a warning sign that communicates sellers are gaining ground for a potential break lower.
USD/JPY outlook
According to Jim Langlands, Founder at FXCharts: "Having broken down through, and closed the US session, below important rising trend support today at around 101.65, I suspect that the pressure over the next few sessions will be to the downside for the dollar. The 4h charts are pointing in this direction, although the dailies are flat so it could well be that 101.20 continues to hold the dollar up as we head into the w/e."
Demand for US bonds benefits Yen
The buying of US bonds led to a sell-off in the US equity market, putting pressure on all Yen crosses, with the USD/JPY in particular continuing to see each rejection off 100.30 less convincing, a warning sign that communicates sellers are gaining ground for a potential break lower.
USD/JPY outlook
According to Jim Langlands, Founder at FXCharts: "Having broken down through, and closed the US session, below important rising trend support today at around 101.65, I suspect that the pressure over the next few sessions will be to the downside for the dollar. The 4h charts are pointing in this direction, although the dailies are flat so it could well be that 101.20 continues to hold the dollar up as we head into the w/e."