3 May 2016
USD/JPY gives up 106, weakest since Oct 2015
The USD/JPY pair finally broke the downside consolidation phase and breached the crucial support of 106 handle largely on cross driven weakness after RBA’s monetary policy decision.
USD/JPY: 105.50 looks within reach
The dollar-yen pair came under fresh selling pressure in the last hour after the yen strengthened further on the back of sharply sell-off in the AUD/JPY cross following RBA’s rate cut decision. The Australian central bank slashed the key interest rate to a new record low of 1.75%, triggering fresh selling in the AUD/JPY.
However, the losses remains restricted as Asian equities cheer more easy money flooding into the markets and therefore, offer some respite to the bulls.
Looking ahead, the latest economic news out of Australia’s will continue to drive market sentiment amid a data-light trading calendar today, ahead of Fed official Mester’s speech scheduled in the NY session.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 106.69/76 (5-DMA/ daily R1). A break above the last, the major could test 107 (round number). While to the downside, the immediate support is seen at 105.50 (Oct 2014 levels) and below that at 105 (key psychological levels).
USD/JPY: 105.50 looks within reach
The dollar-yen pair came under fresh selling pressure in the last hour after the yen strengthened further on the back of sharply sell-off in the AUD/JPY cross following RBA’s rate cut decision. The Australian central bank slashed the key interest rate to a new record low of 1.75%, triggering fresh selling in the AUD/JPY.
However, the losses remains restricted as Asian equities cheer more easy money flooding into the markets and therefore, offer some respite to the bulls.
Looking ahead, the latest economic news out of Australia’s will continue to drive market sentiment amid a data-light trading calendar today, ahead of Fed official Mester’s speech scheduled in the NY session.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 106.69/76 (5-DMA/ daily R1). A break above the last, the major could test 107 (round number). While to the downside, the immediate support is seen at 105.50 (Oct 2014 levels) and below that at 105 (key psychological levels).