The Japanese yen is poised to enjoy some extra demand this Monday, amid safe-haven demand, with the USD/JPY early prices hovering around 122.50, almost 100 pips below Friday’s close. The EUR/JPY on the other hand, is poised to open little changed from its latest close in the 138.20 region.
As Europe suffers the worst confidence crisis in its fifteen years of life, stocks will likely fall sharply across the world whilst gold may finally found some buying interest after struggling for long below the 1,200 mark.
Technically, the USD/JPY pair has found some strong demand on declines towards the 122.45 level ever since June started, which means large stops may gather below it. Should the price extend below it and trigger those stops, the decline can extend this Monday down to 121.07, the DMA and according to Valeria Bednarik, FXStreet chief analyst. She also said “beware of trying to profit from those opening gaps, market will be in no rush to fill them, should panic selling take over markets after the opening.”
(Market News Provided by FXstreet)