7 May 2015
USD/JPY: Risk of a downside break
FXStreet (Guatemala) - USD/JPY is currently trading at 119.38 with a high of 119.52 and a low of 119.33.
USD/JPY has yet again fallen away from territory on the 120 handle and further adds to an increasing negative outlook each time the bears deny the bulls advances through this psychological barrier. We are quiet in Japan with the holidays and we look to the greenback this week and political themes around the EZ instead.
This week holds the Nonfarm Payrolls event as the main driver while over in the EZ, there have been positive developments in respect of the Greek debt scenario and Greece maybe getting close to making a deal with the Eurogroup after all, supporting risk on sentiment in the market which may impact the Yen as a safe haven and a funding currency. Meanwhile, the Yen is strong on the back of a poor performing greenback across the board overnight and ADP employment change missing expectations.
Technically we remain in familiar ranges with 120.82/84 being resistance at December 2014 and the April high. Onwards from here is the 14 year downtrend at 122.07. Meanwhile, a close below the 118.33 March 26 low will be viewed as negative and trigger losses to the February low at 116.64 as Karen Jones, chief analyst at Commerzbank explained. "The risk remains for a downside break."
USD/JPY has yet again fallen away from territory on the 120 handle and further adds to an increasing negative outlook each time the bears deny the bulls advances through this psychological barrier. We are quiet in Japan with the holidays and we look to the greenback this week and political themes around the EZ instead.
This week holds the Nonfarm Payrolls event as the main driver while over in the EZ, there have been positive developments in respect of the Greek debt scenario and Greece maybe getting close to making a deal with the Eurogroup after all, supporting risk on sentiment in the market which may impact the Yen as a safe haven and a funding currency. Meanwhile, the Yen is strong on the back of a poor performing greenback across the board overnight and ADP employment change missing expectations.
Technically we remain in familiar ranges with 120.82/84 being resistance at December 2014 and the April high. Onwards from here is the 14 year downtrend at 122.07. Meanwhile, a close below the 118.33 March 26 low will be viewed as negative and trigger losses to the February low at 116.64 as Karen Jones, chief analyst at Commerzbank explained. "The risk remains for a downside break."