USD/JPY hits multi-month lows near 109.00 amid risk aversion
USD/JPY continues to decline on Wednesday for the straight second day. The pair extends the losses in the initial Asian trading session on Wednesday. The sluggish movement in the US dollar sponsors the lacklustre performance of the pair.
Latest JPY News
The USD/JPY pair retains its bearish stance in the near-term. The 4-hour chart shows that the pair has still room to go to the downside. It’s trading well below a bearish 20 SMA that keeps distancing from the longer ones, which also head south. Also, the Momentum indicator heads firmly lower within negative levels, while the RSI consolidates near oversold readings, indicating prevalent selling interest.
Support levels: 109.05 108.70 108.25
Resistance levels: 109.40 109.85 110.20
The USD/JPY pair has extended its slump to 108.87, its lowest since May 26. The pair bounced from such a low but ended the day in the red in the 109.10 price zone, incapable of attracting buyers. The pair fell as government bond yields remained depressed throughout the day, while Wall Street opened in the red. As equities recovered, the pair got to bounce. In the meantime, the yield on the 10-year US Treasury note spent most of the day hovering around 1.17%.
At the beginning of the day, Japan published the July Monetary Base at the beginning of the day, which came in at 15.4% YoY, down from 19.1% in the previous month. Tokyo July’s inflation was down 0.1% YoY, although the core reading came in slightly better than anticipated, printing at 0.1%. The country will publish the July Jibun Bank Services PMI during the upcoming Asian session, foreseen at 46.4, down from the previous 48.
SPECIAL WEEKLY FORECAST
Interested in weekly USDJPY forecasts? Our experts make weekly updates forecasting the next possible moves of the yen-dollar pair. Here you can find the most recent forecast by our market experts:
Prospect of higher US interest rates fade on weak data, Fed dovishness. USD/JPY loses 110.00 on Tuesday, stays below on Friday. Technical considerations dominate near-term USD/JPY action, bias weakly lower.