USD/JPY Forecast: Following equities in their way down
|USD/JPY Current Price: 108.92
- US indexes fell on profit-taking, dragging the pair lower.
- Japan heading into an extended holiday, back to business next Friday.
- USD/JPY bearish after falling below the 109.00 mark.
The USD/JPY pair has fallen to 108.76, its lowest since December 12, ending the day just below the 108.90 level. The pair was down on dollar’s weakness throughout the first half of the day, accelerating its slump with Wall Street’s opening, as US indexes were sharply down. US Treasury yields, however, surged in quiet trading, with the yield on the benchmark 10-year note peaking at 1.94%. The yield curve is widening, as fears of a US recession eased, which means that the current greenback’s decline could be considered seasonal, with the market set to experience some wild moves post-holidays.
Japan didn’t release macroeconomic data at the beginning of the week, and local markets will be closed on holidays until next Friday. Most Asian markets will be closed amid the year-end holiday.
USD/JPY short-term technical outlook
The USD/JPY pair is bearish, according to the 4-hour chart, as the pair is comfortable below all of its moving averages, and with the 20 SMA accelerating south above the larger ones. Technical indicators, in the meantime, continue heading south despite being in oversold levels, favoring additional declines, mainly on a break below 108.60, now the immediate support.
Support levels: 108.60 108.20 107.90
Resistance levels 109.10 109.40 109.75
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.