USD/JPY: key technical downside level broke, next stop 109.90?
|USD/JPY is currently trading at 110.97 at the time of writing with a high of 111.39 and a low of 110.82.
Market wrap: minor dollar weakness - Westpac
USD/JPY is under pressure from the off this week in thin early trade and markets are reacting to the fall-out between the republicans and failure of healthcare reform. The US healthcare bill was scrapped on Friday but there was relatively little immediate reaction in the dollar and US interest rates the time. Analysts at Brown Brothers Harriman explained that they are less sanguine although they recognize that the dollar's resilience ahead of the weekend could be a preliminary sign that recent fall may be nearly over. On the back of the inability of the US House of Representatives to agree on an alternative to the Affordable Care Act, a key driver for USD/JPY this week will be the US stock market.
DXY: technically, downtrend is not over - BBH
In respect to the S&P 500, last week's pullback stopped just shy of the 38.2% retracement of this year's rally (~2337), as noted by analysts at Brown Brothers Harriman, adding, "the 50% retracement is near 2317. The technical indicators warn of the risk that the correction continues, though a move above 2369 would indicate that phase is over."
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that the upward corrective movement can extend up to 112.00, a major Fibonacci resistance, without actually affecting the dominant bearish trend. "Renewed selling interest below 111.00 should favor a steeper decline towards 109.90, the 50% retracement of late 2016 monthly rally."
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.