However, USD/JPY found strong support ahead of the 79.00 mark and bounced during the New York session helped by a positive turn in risk sentiment. The pair clawed back to the 79.30 area and it is currently trading around 79.25/30, virtually unchanged on the day. However, USD/JPY is on track to post its third weekly loss in a row, this time for 0.4%.
From a technical view, "The near-term structure remains negative, as fresh weakness spikes lower to test short-term range floor and 200 day MA at 79.00 zone that kept the downside protected for the past three weeks", Slobodan Drvenica, analyst at Windsor Brokers Ltd recently commented.
"As strong barrier at 80.00 remains intact and near-term studies turn into negative territory, immediate risk is seen on a break below range to open fresh bear-phase and expose 78.60 and 78.00, ahead of key short-term support at 77.65 that would come in focus on a break below the latter", the analyst said. "On the upside, immediate barriers lie at 79.38/50, while only lift above 79.70 turns focus higher".