USD/JPY dives to fresh 1-month lows

FXstreet.com (Barcelona) - The USD/JPY foreign exchange rate is last trading at fresh session lows 97.68, moments before BoJ Kuroda speaks, following worse than expected y/y retail sales in Japan, with Nikkei index plummeting a -2.55%.

USD/JPY bearish momentum strong

“The USD/JPY starts the day below its 100 DMA,” says Valeria Bednarik, Chief Analyst at Fxstreet.com, adding: “The hourly chart presents a strong bearish tone, with price well below moving averages, both heading lower above current price, and indicators pointing south after correcting some oversold readings. The 4 hours chart shows a stronger bearish momentum, with past Friday low of 97.95 as level to break to confirm another leg lower.”

USD/JPY key technical levels

Bednarik sees support levels at 97.60 and 97.20, while resistance levels at: 98.45, 98.80 and 99.25.