USD/JPY Sinks Further Across 108.00

After Losing its Grip of the 109.00 Handle, USD/JPY sank across 108.00, as it slid 0.6% to 107.78 overnight...


The Japanese yen is holding its strength against the U.S. dollar

Overnight (June 9) the ICE Dollar Index marked a 3-month intraday low of 96.23.

After Losing its Grip of the 109.00 Handle, USD/JPY sank across 108.00, as it slid 0.6% to 107.78 overnight.

The yen's strength seems not affected by S&P Global Ratings' revising down the outlook on Japan's sovereign rating to "Stable" from "Positive". S&P pointed out: "The Covid-19 outbreak has set back Japan's fiscal stabilization process but we expect that to get back on track in the next two to three years as the economy recovers."

As shown on an Intraday 30-minute Chart, USD/JPY's Technical Configuration remains Bearish.

Source: GAIN Capital, TradingView

Currently USD/JPY keeps trading within a Bearish Channel drawn from yesterday.

In fact, the descending 50-period moving average has been helping to maintain intraday bearishness since June 8.

Having taken out a Downside Support at 107.80, USD/JPY is on its way to the next one at 107.40.

Once below 107.40, the currency pair should seek support at 107.05, a price floor seen at end-May.

Meanwhile, the Trailing Key Resistance has been lowered to 108.00.

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account