FXStreet (Mumbai) – The USD/JPY pair was pushed to a ten-day low of 119.55 as the activity in the S&P futures indicate a bout of risk aversion on the Wall Street ahead.
Trades below 38.2% retracement
A minor recovery ahead of the US session ran into offers at the 38.2% Fib R of 125.86-116.08 levels, after which the pair fell to a session low of 119.55. The bid tone on the safe haven JPY gathered pace as the S&P 500 futures dropped 0.5%.
Moreover, the stocks exposed to China and Europe are likely to witness losses and keep the Yen and other traditional safe haven assets n demand. It remains to be seen if the pair finally witnesses a bearish break from the symmetrical triangle formation seen on the daily chart since mid-September.
USD/JPY Technical Levels
At 119.58, the immediate support is seen at 119.49 (Oct 1 low), under which the pair could drop to 119.05 (Sep 18 low) and 118.68 (Oct 2 low). On the higher side, resistance is seen at 120.00, followed by 120.22 (triangle resistance on the daily chart). Above 120.22, the pair could test offers at 120.56 (Oct 6 high).
(Market News Provided by FXstreet)