USD/JPY Sinks Further Across 108.00
Ming Lam June 10, 2020 4:15 AM
After Losing its Grip of the 109.00 Handle, USD/JPY sank across 108.00, as it slid 0.6% to 107.78 overnight...
The Japanese yen is holding its strength against the U.S. dollar.
Overnight (June 9) the ICE Dollar Index marked a 3-month intraday low of 96.23.
After Losing its Grip of the 109.00 Handle, USD/JPY sank across 108.00, as it slid 0.6% to 107.78 overnight.
The yen's strength seems not affected by S&P Global Ratings' revising down the outlook on Japan's sovereign rating to "Stable" from "Positive". S&P pointed out: "The Covid-19 outbreak has set back Japan's fiscal stabilization process but we expect that to get back on track in the next two to three years as the economy recovers."
As shown on an Intraday 30-minute Chart, USD/JPY's Technical Configuration remains Bearish.
Source: GAIN Capital, TradingView
Currently USD/JPY keeps trading within a Bearish Channel drawn from yesterday.
In fact, the descending 50-period moving average has been helping to maintain intraday bearishness since June 8.
Having taken out a Downside Support at 107.80, USD/JPY is on its way to the next one at 107.40.
Once below 107.40, the currency pair should seek support at 107.05, a price floor seen at end-May.
Meanwhile, the Trailing Key Resistance has been lowered to 108.00.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.