USD/JPY at risk of losing the 105.00 level and accelerating its slump
|The USD/JPY pair trades around its daily opening in the 105.40 price zone, on pause amid a cautious mood. Japanese data resulted worse than anticipated while the US session will bring several Fed’s speakers, including vice-chair Clarida, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“Japanese data published at the beginning of the day was disappointing, as Industrial Production rose 1% MoM in August, below the 1.7% expected. Yearly basis, Industrial Production fell 13.8%. Capacity Utilization in the same period, rose 2.9% missing the expected 3.6%. The US macroeconomic calendar includes today the September PPI, foreseen at 0.2% YoY, and several Fed’s speakers, including Vice-chair Clarida.”
“The USD/JPY pair has a limited bullish potential, according to the 4-hour chart, as it continues to trade below all of its moving averages. Furthermore, the 20 SMA maintains its bearish strength and is about to cross below the 100 SMA. Technical indicators have recovered unevenly from near oversold readings, and while they still head higher, they remain below their midlines.”
“The USD/JPY pair needs to break above the 105.80 resistance to gather bullish momentum, something quite unlikely at this point. Bears have better chances, although they need a break below 105.00 to confirm a new leg south.”
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.