FXStreet (Guatemala) – USD/JPY is currently on its knees again after a strong downtrend on the back of global stocks crashing and oil scraping the barrel while investors run for cover.
The yen will remain in favour for its safe haven status and these recent lows of 116.59 are just shy of the recent low of 116.13 before 115.84 lows of 15th January 2015. However, it may not be feasible for the Yen to continue strengthening while the BoJ are prepared to ease and the Fed is looking for reasons to continue tightening. CPI and retails sales data will be key next week for the US.
USD/JPY levels
Technically, Karen Jones, chief analyst at Commerzbank explained, “Scope remains to extend losses towards the 116.47 support line and the 116.15 August low. The outlook is looking increasingly negative short term and at this stage we are unable to rule out losses back to the 114.00/113.95 zone, this the 23.6% retracement of the entire move up from the 2011 low. Please note the base of the weekly cloud lies at 113.52.”
(Market News Provided by FXstreet)