FXStreet (Guatemala) – Chief analyst at FXStreet, Valeria Bednarik, explained that the USD/JPY pair fell at the beginning of the day, as risk aversion dominated the Asian session.
Key Quotes:
“There was some speculation that the movement started after some tensions arose as a US navy destroyer entered in the South China Sea. But stocks plunged, and commodities followed, favoring the safe-haven Japanese currency.”
“There was also some speculation that the BOJ will refrain from easing in its Friday meeting, also weighing on the pair, but there was no clear catalyst before the risk-averse move. The rally extended after US data disappointed, and the pair fell down to 120.15 intraday, but bounced back to consolidate around the 120.35 level by the end of the day.”
“The short term picture is now bearish, with the 1 hour chart showing that the price consolidates below its 100 SMA, whilst the technical indicators head south below their mid-lines. In the 4 hours chart, the technical indicators present a strong bearish momentum in negative territory, although the price is still above its 100 and 200 SMAs.”
(Market News Provided by FXstreet)