Forex: USD/JPY plunges to 79.75, 100-day MA

FXstreet.com (Barcelona) - After being capped at 80.18, the USD/JPY began a quiet retraction on its way to 80.00 level, but soon a sharp fall followed and the decline has extended to 79.75 low, where the 100-day moving average lies.

With almost 40 pips range in the day, the pair is having trouble dealing with the greenback’s strength of early European morning and the risk-off sentiment that usually weakens the USD/JPY.

“Only loss of 79.80, Fib 38.2% and higher platform, would delay bulls”, wrote Windsor Brokers analyst Slobodan Drvenica, meaning that the near term bullish view might have been put on hold, with supports at 79.72 and 79.60. However, the drop to 79.75 saw a bounce to 79.80 area, where the pair quotes at the moment.

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