FXstreet.com (San Francisco) - Risk aversion supported the Japanese yen across the board Monday, dragging USD/JPY below the 78.00 level to a fresh 6-day low of 77.79 before closing lower for a fourth straight day. The market last trades at 77.86.
Regional bourses are mixed at the Tokyo fix, as Japan 225 is quoted up 4.21 points at 9,073.50, and as S&P/ASX 200 is down 11.97, 0.3% 4373.50.
In a research note, Valeria Bednarik, Chief Analyst at FXstreet.com says “there aren’t many signs [that aim] higher,” and that, “due to the straight fall of the past 2 trading days, the pair may have found a temporal bottom and attempt a correction higher.” The analyst goes on to say that price needs to first stabilize above 78.45 before any further upside movements.
However, JP Morgan holds a different view, noting of USD/JPY: “While the medium term consolidation phase continues to develop, USD/JPY stays vulnerable to additional short term weakness in line with the gradual decline from the June peak – a trend is likely to persist in the coming weeks. Importantly, the recent violation of the key 77.90/77.40 support zone (June/Aug lows and the 76.4% retrace from Oct ’11 low) is consistent with this view.”
Regional bourses are mixed at the Tokyo fix, as Japan 225 is quoted up 4.21 points at 9,073.50, and as S&P/ASX 200 is down 11.97, 0.3% 4373.50.
In a research note, Valeria Bednarik, Chief Analyst at FXstreet.com says “there aren’t many signs [that aim] higher,” and that, “due to the straight fall of the past 2 trading days, the pair may have found a temporal bottom and attempt a correction higher.” The analyst goes on to say that price needs to first stabilize above 78.45 before any further upside movements.
However, JP Morgan holds a different view, noting of USD/JPY: “While the medium term consolidation phase continues to develop, USD/JPY stays vulnerable to additional short term weakness in line with the gradual decline from the June peak – a trend is likely to persist in the coming weeks. Importantly, the recent violation of the key 77.90/77.40 support zone (June/Aug lows and the 76.4% retrace from Oct ’11 low) is consistent with this view.”
