USD/JPY drops on Washington Post: 'Senate GOP said to consider 1 Yr Corporate Tax cut delay'

USD/JPY dropping on Washington Post article that Senate GOP said to consider 1 Yr Corporate Tax cut delay.
USD/JPY downside opening up for test of Kijun at 113.19?

Ross J Burland FXStreet

USD/JPY has dropped back from the vicinity of the 114 handle and is making a fresh low for the Europen/NTY and early Asia. The move comes on the back of the Washington Post article, citing "four people familiar with a draft of the legislation" that said that the Senate GOP is said to be considering a 1 Yr corporate tax cut delay. Currently, USD/JPY is trading at 113.82, down -0.11% on the day, having posted a daily high at 114.04 and low at 113.80.

USD/JPY was already ripe for a sell-off

Meanwhile, USD/JPY ranged between 113.70 and 114.34 closing at 113.94 in NY in a fairly risk-off theme in markets led by US stocks while bears eye a test of Kijun at 113.19. The Dow Jones Industrial Average closed the day with small gains at 23,557.23, the S&P 500 dropped 0.78 points, or 0.03 percent, to 2,590.57 and the Nasdaq Composite lost 20.03 points, or 0.3%, to 6,767.78. The US yields were also dropping and the pressure is mounting for USD/JPY bulls that are unable to convince the markets when breaking back onto the 114 handle.

Asian FX Outlook: China's trade balance up next, USD strength not convincing

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the price remains above its 100 and 200 SMAs, both maintaining their bullish slopes.

"Technical indicators entered bearish territory, with the Momentum now surpassing its previous November low, somehow anticipating additional declines ahead, particularly on a break below the 113.50 region, where the pair met buying interest a couple of times during the last two weeks."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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