USD/JPY analysis: slide won't stop at 108.80
|USD/JPY Current price: 109.20
The USD/JPY pair remained under pressure all through this Thursday, falling down to 109.20 area late US session and heading into the Asian one nearby, as tensions between North Korea and the US coupled with poor US data that suggested that the Fed won't need to rush into tightening. US Treasury yields plunged alongside with equities, with the 10-year note benchmark reaching a fresh intraday six-week low of 2.21% and holding nearby at the end of the day, and the 30-year note yield setting at 2.80%. Wall Street had a rough day, with the DJIA and the Nasdaq on a three-digit decline adding to the negative momentum of the pair. The Japanese yen will remain empty this Friday, which means that local equities will lead the way, and given the latest behavior of European and American indexes, there's a good chance local shares will follow-through. From a technical point of view, the pair gives no sign of changing course, despite being oversold, as in the 4 hours chart, technical indicators are hovering near oversold readings, but the price keeps posting lower lows, while moving further below bearish 100 and 200 SMAs. The immediate support is 108.80, June's low, with a break below the level favoring an extension down to 108.12 this year's low set last April.
Support levels: 109.50 109.20 108.80
Resistance levels: 110.15 110.40 110.70
View Live Chart for the USD/JPY
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