USD/JPY Sinks Further Across 108.00

Currency exchange rate board of multiple currencies
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.

Related tags: Forex

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