USD/JPY analysis: looking for a test of 112.20
|USD/JPY Current price: 112.73
- Wall Street's collapse and plummeting yields sent the JPY higher.
- Japan's November Services PMI up next, latest at 52.4.
The Japanese yen appreciated against its American rival on safe-haven demand, as Wall Street collapsed why US Treasury yields were also sharply lower, stirring concerns about slowing economic growth in the US. Easing trade tensions weren't enough to keep the mood up, moreover, after speculative interest reassessed the weekend news, full of good intentions but with little of substance toward a possible deal. As for US Treasury yields, long-term ones plunged, while those with shorter maturity remained well anchored. The yield for the 10-year Treasury note touched 2.89% settling at its lowest since last June. There were no relevant news in Japan and the country will only see the release of the November Services PMI during the upcoming session, latest at 52.4.
The USD/JPY pair is at 2-week lows and bearish according to technical readings. The main target, should the pair remain below the 113.00 level, is 112.20, where the pair has its 100 DMA. Short-term, and according to the 4 hours chart, the downward momentum is strong, as the pair has fallen below its 100 and 200 SMA, with the shortest one accelerating its decline above the larger one, and technical indicators maintaining their downward slopes near oversold readings.
Support levels: 112.55 112.20 111.85
Resistance levels: 113.00 113.35 113.70
View Live Chart for the USD/JPY
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