USD/JPY: Key resistance remains 106/107 [Video]
|USD/JPY
The dollar failed to get any traction out of the yen in the wake of the FOMC decision (largely due to the subdued moves on US Treasuries). Although there has been a basis of support forming overnight on USD/JPY, yesterday’s closing breach of 105.10 is an important break. It completes a range breakdown of just under 200 pips and certainly opens pressure on 104.15. The apparent lack of dollar rebound plays into this. Technical momentum indicators swinging lower with downside potential suggest that near term rallies are a struggle now. The hourly chart shows resistance mounting at 105.30/105.55 as an intraday sell-zone under the more considerable resistance 105.75/106.00. Initial support is at 104.80 but we expect 104.15 to be tested in due course. Below that there is minor support at 103.10 before the March spike low at 101.17. Key resistance remains 106/107.
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.