The Yen
strengthened for today versus the Dollar and we can see that the USD/JPY
reached a low around the 118.67 level among a rise in risk aversion. The
Chinese data came out worse than expected and that has made investors and
traders think twice about the Chinese economic contraction, which could have
serious consequences on the global economy. The public has rushed into safe
haven instruments like the Yen, the Swiss Franc and gold. However, on the daily
chart of the USD/JPY we can see that by the end of today’s session, the price
tried to correct to the upside. If the price keeps correcting to the upside,
then the 120.00 level could act as resistance. To the downside, the 118.67
level or the 118.00 level could act as support.
At the end of the Asian session JPY/USD rose to 119.15, which is a peak value by mid-October 2015 onwards.
ReplyDeleteIt could have found some support.
ReplyDeleteIt's still testing the support at 118.67 although it will likely break below that level.
ReplyDeleteInteresting analysis, I will keep an eye on it.
ReplyDeleteGood analysis.
ReplyDeleteGreat post.
ReplyDelete