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USD/JPY approaches monthly lows at 105.10

USD/JPY approaches monthly lows at 105.10

The upside momentum in USD/JPY run out of steam ahead of the critical 107.00 mark on Friday, where also coincide the 100-day SMA and monthly peaks. Immediately to the downside emerges the monthly low at 105.10.

Key quotes

“The next moves in US yields in the wake of the latest Fed’s decision promise to be crucial in determining the price action in the pair in the very near-term. In addition, political uncertainty (if any) following PM Abe’s resignation could also undermine the scenario around the Japanese safe haven.”
 

“USD/JPY faces immediate contention in the boundaries of the 105.00 yardstick, or monthly lows. If sellers remain in control, then focus of attention should shift to the July low in the 104.20 zone. While further downside remains on the cards – particularly following the current bearish ‘outside day’ candle - a visit to the area of yearly lows in the 101.20/15 band is not favoured for the time being.” 

“On the upside, the 107.00 region emerges as the next hurdle of significance ahead of the critical 200-day SMA just below 108.00 the figure.”

 

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