USD/JPY Sinks Further Across 108.00
Ming Lam June 10, 2020 1:15 PM
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.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.