USD/JPY Forecast: Yen's strengthens on risk aversion
|USD/JPY Current price: 100.45
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Yen's strengthens on risk aversion. As market sentiment deteriorated and stocks fell, the Japanese yen grinded higher against most of its major rivals at the beginning of the week, with the USD/JPY pair falling down to 100.34 so far this Monday. The JPY advanced in spite of BOJ's Kuroda comments, saying that the central bank stands ready to use every available tool to achieve its 2% inflation target. The pair bounced modestly from the mentioned low, but remains below 100.65, a major Fibonacci resistance now. The technical bias favors the downside, as the price is below a bearish 100 SMA, while technical indicator have bounced modestly from near oversold readings, but are far from suggesting an upward corrective move ahead. In the 4 hours chart, the Momentum indicator turned sharply lower and entered negative territory, but the RSI indicator stands flat around 38, indicating limited downside strength at the time being. If the upcoming US housing data disappoint, the pair can break lower and test the 100.00 level during the US session.
Support levels: 100.35 100.00 99.70
Resistance levels: 100.65 101.10 101.60
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