USD/JPY: bears back in charge, breaking down below 110.00
|- USD/JPY: bulls denied.
- USD/JPY: dollar gets not let up.
USD/JPY hit a high of 111.48 before a low of 111.69 was scored overnight. Currently, USD/JPY is trading at 110.91, down -0.14% on the day, having posted a daily high at 111.14 and low at 110.89.
USD/JPY fell back into the hand's of the bears overnight and the previous highs of 111.48 were left for dust as the market refuses to give the dollar a break.
The US10yr yields actually made fresh 10-month highs to 2.63% although the DXY ranged between 90.4080-90.9830 and was closing in on the 90.5260 mark for the close.
Congress to pass a temporary funding extension?
There was an air of caution in NY as investors waited to see if Congress could pass a temporary funding extension and avoid a partial shutdown on Friday while the Democrats claim that they could block any such bill. In recent wires, the US House majority leader McCarthy was cloamed to have been saying, "we're in very good shape" while the Conservative Republicans will back funding bill to avert a government shutdown, according to CNN.
USD/JPY levels
USDJPY: A neutral stance is required
Valeria Bednarik, chief analyst at FXStreet explained that, technically, the 4 hours chart shows that the pair continues developing below its 100 and 200 SMAs:
"Technical indicators have managed to bounce modestly after reaching their mid-lines, suggesting a limited potential upward despite the latest recovery. Renewed selling pressure below the mentioned low, should open doors for a steeper slide towards the 109.80 region, the next strong static support area," Valeria added.
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