- USD/JPY continues downtrend after brief pause on Monday, hits fresh 18-month lows at 106.04.
- Broad US dollar weakness across the board in light of a recovery in commodities also weighing on the pair.
- Sluggish manufacturing activity reports from China released over the weekend weighed negatively on the markets.
- With Japan’s markets closed for rest of the week, focus remains on the US docket. Key US employment data later this week, along with US ISM manufacturing PMI report.
- Technically upside in the pair lack momentum. RSI weak at 31. Major moving averages biased lower.
- Pair finds support by trendline at 106 levels, breaks below will drag the pair to 105.50 levels.
- Immediate support and resistance are located at 105.50 (Oct 16th 2014 low) and 106.81 (May 2nd highs) respectively.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-recovers-slightly-from-fresh-18-month-lows-at-10613-good-to-sell-rallies-202794) has hit TP1 and is approaching TP2.
Recommendation: Book partial profits, lower stops to 106.85, hold for 105.50
The material has been provided by InstaForex Company – www.instaforex.com