USD/JPY falters amid safe-haven yen strength
James Chen, CMT September 29, 2016 7:30 PM
The past few days this week have seen a clean rebound for USD/JPY off the major support area around 100.00. This level has served as key technical and psychological support since June’s brief post-Brexit dip below 100.00. Thursday’s initial surge provided some hope for a continuation of the recent USD/JPY rebound off this level, but the yen’s incessant strength continued to weigh on the currency pair.
With key risk conditions on the horizon, including the US presidential elections, new developments in the battered banking sector, and further details regarding the reported OPEC oil agreement, USD/JPY could be subject to significantly more upcoming volatility.
USD/JPY continues to be entrenched in a clear bearish trend from both long-term and short-term perspectives. The currency pair is currently following a clear descending trend line extending back from late-May’s 111.00-area highs. With any exacerbation of market risk factors, the yen could rise even further, potentially pressuring USD/JPY below the 100.00 level and towards the next major downside support targets at 97.00 and 95.00.
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