The USDJPY pair plunged a day before, due to the sell-off in the US dollar and the Treasury yields. The US Dollar accelerated its correction from five-month tops against its main competitors while a rout in the US rates exacerbated the pain in the buck.
The spot remained unfazed by stronger US job openings data and the International Monetary Fund’s (IMF) upward revision to the global growth forecasts.
Looking ahead, it remains to be seen if the major can sustain the rebound, as investors could turn cautious ahead of the FOMC meeting’s minutes release.
The US Dollar Yen pair broke the bullish channel’s support line clearly and settled below it, which puts the price under expected negative pressure in the upcoming sessions, targeting testing 109.22 level initially, noting that breaking this level will extend the bearish wave to reach 108.40 as a next station.
Consequently, the bearish bias will be expected for today unless the price managed to breach 110.15 level and hold above it.
The expected trading range for today is between 109.00 support and 110.15 resistance. We expect that the trend will continue to be bearish.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.