USD/JPY is catching the attention of the FX space, with the downside opening up and testing through the 113 handle marking a fresh low of the month at 112.87 so far and lowest level since the 29th Feb recovery at 112.23.
The theme of markets have surrounded the rally in commodity prices, but investors apatite remains fragile, but both scenarios are supporting the Yen and the recent sideways channel’s support has been put under pressure and given way to the bears through the 200 sma on the hourly chart.
The GDP helped boost a revival in the Yen as well, just before the Tokyo shift got going today with annualized -1.1% vs -1.55 expected for Q4. As we move along, the bourses are also in the red and supporting the bid on the Yen.
USD/JPY levels
Technically, in the 4 hours chart, the pair has broken below the horizontal 100 SMA, and the Momentum indicator turns south below the 100 level. The RSI indicator is now at 36 with price, broken below the 20 dma at 113.27, is now below the pivot of 113.57 and targeting 112.70 S2 and S1 at 112.17 levels.
(Market News Provided by FXstreet)