USD/JPY offered below 118.40 – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, shares the technical outlook for USD/JPY, noting that the pair might extend its losses on a break below the strong support at 118.40.

Key Quotes

“The USD/JPY extended its decline to 118.40 before bouncing back towards current levels, still having trouble to regain the 119.00 figure.”

“Ever since the BOJ commented further stimulus may be counterproductive, the yen has been strengthening against its rivals, with upward corrective movements seen now as short term selling opportunities.”

“Technically, the 1 hour chart shows that the price holds below its 100 SMA while 200 SMA offers intraday support at 118.50. Indicators in the same time frame maintain a neutral tone around their midlines, while in the 4 hours chart technical readings maintain a clear bearish momentum that supports some further declines particularly below 118.40 strong static support level.”

United Kingdom CB Leading Economic Index: 0.1% (December) vs -0.3%

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