USD/JPY analysis: downside strength limited, as long as above 100.00
|USD/JPY Current price: 100.28
View Live Chart for the USD/JPY
The USD/JPY pair recovered up to 100.98 during the past Asian session, as markets experienced some relief following the US Presidential debate, seen as won by Mrs. Clinton by the media. The good mood, however, was short-lived, with woes surrounding the banking sector putting European equities under strong selling pressure and resulting in the Japanese yen resuming its advance. The pair traded as low as 100.07 at the beginning of the US session, bouncing from the level after the release of better-than-expected US Markit PMI figures for September, but selling interest pushed it back lower, now around 100.30, and overall bearish. The short term picture supports an extension in line with the dominant trend, as in the 1 hour chart, the 100 SMA continues capping the upside, now around 100.60, while technical indicators have partially lost their bearish strength, but remain well below their mid-lines. In the 4 hours chart, technical indicators present sharp bearish slopes within negative territory, while the price develops well below its 100 and 200 SMAs, both in the 100.50/70 region. Still, and considering that Asian share markets may follow the lead of Wall Street and advance early Wednesday, the downward risk is seen limited, as long as the price holds above the 100.00 level.
Support levels: 100.00 99.70 99.25
Resistance levels: 100.65 100.95 101.40
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.