FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that USD/JPY closed the weekly opening gap during the European morning, on hopes a strong US employment report will give the greenback a boost.
Key Quotes:
“But the pair retreated down to a daily low of 122.95 as the figures disappointed. Also, the pair came under pressure after stocks turned lower mid American afternoon, closing the day around the 123.00 figure.”
“The 1 hour chart shows that the price held above its 100 SMA that presents a bearish slope around the 122.80 region, providing an immediate intraday support, whilst the technical indicators present bearish slopes in negative territory, supporting additional declines.”
“In the 4 hours chart, the price has returned below its moving averages that converge in the 123.30 region, whilst the technical indicators retreated from their highs and turned flat in positive territory, limiting slides in the short term. The risk remains towards the downside as long as the 123.30 level continues to attract selling interest, with a break below the mentioned 122.80 support, favoring a retest of the weekly low around 122.00.”
(Market News Provided by FXstreet)