USD/JPY sinks to 101.75 on global risk-aversion
|The USD/JPY pair remained well offered and extended its slide further below 102.00 handle towards post-Brexit lows to currently trade around 10-pips off session through, at 101.75 level.
The prevalent uncertain environment continues to weigh on investor sentiment, spooking global financial markets and boosting the safe-haven appeal of the Japanese Yen against it US counterpart. Global financial markets seems to have stalled their post-Brexit sharp recovery, with most European equity markets trading deep in negative territory on Tuesday.
Moreover, fading hopes of an imminent Fed rate-hike in 2016 is seen weighing on the US Dollar, dragging the USD/JPY pair further deeper in to negative territory.
Investors now turn their focus to FOMC meeting minutes, slated for release on Wednesday ahead of the keenly watched US monthly jobs report on Friday. In the meantime, US factory orders and Fed official Dudley’s speech, later during NY trading session, might provide some momentum for short-term traders.
Technical levels to watch
From technical perspective, break below 101.50-40 immediate support is likely to trigger a fresh leg of weakening trend for the pair, which might drag it below 101.00 round figure mark, possibly towards retesting 100.00 psychological mark support. Meanwhile on the upside, the pair needs to sustain its move back above 102.00 round figure that could assist it back towards 102.50-60 resistance area.
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