USD/JPY – Japanese Yen Proving Its Safe Haven Status
Titan FX | Jun 27, 2016 10:03PM ET
Key Highlights
· US dollar faced a lot of selling pressure against the Japanese yen post the Brexit decision, as the USD/JPY pair declined heavily.
· There was a sharp downside move in USD/JPY, taking the pair below a major support area of 104.00-103.60.
· In the US today, the Gross Domestic Product Annualized will be released by the US Bureau of Economic Analysis, which is forecast to grow by 1% in Q1 2016.
· The US Consumer Confidence will be released by the Conference Board, which is forecasted to increase from 92.6 to 93.3 in June 2016.
USD/JPY Technical Analysis
The US dollar took a hit against the Japanese yen recently, and it even spiked below the 100.00 support area before recovering. During the downside move, the USD/JPY pair also broke a major support area of 104.00-103.60, which may now act as a resistance.
The pair is currently below the 100 and 200 hourly simple moving averages, which means there is a lot of bearish pressure. If the pair attempts to correct higher, then both the stated MA’s might act as a barrier for an upside move in the short term.
The pair recently broke a short-term bearish trend line, suggesting that there are chances that the pair may attempt to move towards the highlighted resistance area.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.