The Japanese Yen continued benefiting from a global flight to safety and dragged the USD/JPY pair back below the key 110.00 psychological mark. Based on this, are downside pressures possible? Let’s find out with the latest 23 May USDJPY Technical Analysis.
23 May, OctaFX – The US dollar has moved sharply lower against the Japanese yen currency, hitting 109.74, as risk-off trading sentiment spreads through financial markets. The risk-sensitive USD/JPY pair tumbled, following a speech from US President Donald Trump, who struck a more cautious tone towards his upcoming meeting with North Korea.
Geopolitical tensions resurfaced after the US President Donald Trump casted doubt on the upcoming historic summit with North Korea in June. Trump also tempered optimism over the progress made in the recent US-China trade talks and prompted a global wave of risk-aversion trade on Wednesday.
All eyes remain glued to the latest FOMC meeting minutes
The risk-off mood was further evident from a sharp slide in the US Treasury bond yields, which seemed to have largely offset resurgent US Dollar demand and did little to stall the pair’s slump back below the very important 200-day SMA resistance-turned-support.
Today’s key focus would be on the release of latest FOMC meeting minutes, which would be looked upon for fresh clues over the central bank’s near-term monetary policy outlook and eventually help determine the pair’s next leg of directional move.
Downside pressures are likely to build around the USDJPY pair while price trades below the key 110.03 technical level.
23 May USDJPY Technical Analysis
- The USDJPY pair is strongly bearish while trading below the 110.03 level, key support is now found at the 109.41 and 109.00 levels.
- If the USDJPY pair moves back above the 110.03 level, buyers may then test towards the 110.50 resistance level.
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