USD/JPY: A big figure down in Asia risk-off as Trumpcare fails

Dhwani Mehta FXStreet

The USD/JPY pair is meandering near fresh four-month lows, with downside opening up for a test of 200-DMA support at 109.20, as the bears remain in control amid risk-aversion at full steam.

Risk-off persists at the start of a brand new week, as treasury yields and equities are sold-off into unwinding of the Trump trade, after Friday’s Healthcare bill failed to clear the House vote.

The Healthcare bill failure raised questions over the Trump administration and its ability to introduce tax reforms and fiscal spending plans, which knocked-off the buck to the lowest levels since November 2016 against its main competitors.

Attention now turns towards the FOMC member Evan’s speech, which will fill up an otherwise quiet US calendar. Meanwhile, the sentiment on the European markets will drive the yen markets.

USD/JPY Technical levels to watch

The major finds immediate resistance at 110.68 (daily pivot). A break above the last, the major could test 110.87/111 (5-DMA/ round figure) and 111.31 (classic R2/ Fib R3) beyond the last. While to the downside, the immediate support is seen at 110.05 (classic S2/ Fib S3) next at 109.68/50 (classic S3/ psychological levels) and below that at 109.20 (200-DMA).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 111.56

50% Bullish
50% Bearish
0% Sideways

Bias Neutral

1 Month

Avg Forecast 113.42

69% Bullish
12% Bearish
19% Sideways

Bias Bullish

1 Quarter

Avg Forecast 113.99

65% Bullish
12% Bearish
23% Sideways

Bias Bullish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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