USD/JPY turns negative, Shanghai Composite drops 0.8 percent

  • The yen is on the rise, possibly due to weakness in the Chinese stocks.
  • The bullish breakout remains elusive.

The Japanese Yen seems to have caught a bid wave, tracking the decline in the Shanghai Composite index.

The Chinese index has opened on a negative note, now trading 0.9 percent lower on the day. Consequently, the USD/JPY pair is losing altitude. As of writing, the spot is down 0.20 percent at 107.20, having clocked a session high of 107.61.

The retreat from 107.61 to 107.28 marks failure to hold above 107.49 - key resistance level. A clear break above the key hurdle would confirm the much-awaited bullish breakout and shall open the doors to 108.00 - 108.28 (Jan. 26 low).

The pair risks falling further if the S&P 500 futures (up 0.4 percent) turn negative and the US March retail sales print below estimates.

USD/JPY Technical Levels

A below 107.02 (10-day MA) would allow a drop to 106.75 (50-day MA) and 1006.62 (April 10 low). On the higher side, a daily close above 107.49 (April 5 high) could yield a sustained rally to 108.00 (psychological level) and 108.28 (Jan. 26 low).

15M Bearish Oversold High
1H Bearish Neutral Shrinking
4H Bearish Neutral Expanding
1D Bullish Overbought Expanding
1W Bearish Neutral Expanding


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