We are seeing some intent for the downside in USD/JPY in the open and we are now below the overnight low of 111.08 for another advance by the bears who have scored through and below the 111.0 handle.
USD/JPY has been suffering on the back of risk appetite and while stocks remain directionless for the start of this week. Overnight, U.S. yields were softer while the10y benchmark was down 1.28% to 1.77% and a fragile greenback was sliding across the board.
In respect of data, the US final February durable goods report showed orders fell 3% m/m. "That was a weak reading and in part may have been adversely affected by the financial market volatility in January and early February," explained analyst at ANZ. "If manufacturing is recovering and the labour market continues as it is, then capex should recover, especially as equities and credit markets have recovered and the USD is now weaker."
USD/JPY levels
"In the 4 hours chart, the technical indicators present a strong bearish momentum, with the RSI indicator approaching oversold levels, and the price well below its 100 and 200 SMAs, all of which supports a continued decline down to the 110.00 figure.," explained Valeria Bednarik, chief analyst at FXStreet.
(Market News Provided by FXstreet)
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