A look at the latest 6 February USDJPY Technical Forecast shows that the pair finds a floor at 109.00 in Asia. It also reveals that bearish pressure is still high. Read on!
6 February, GKFX – USD/JPY is sideways in Tokyo, trading around 109.15 following yesterday’s collapse during New York.
The Yen gained impressively over the Greenback as risk-averse traders piled into the safe haven currency as inflation fears push equities markets around the world lower, beginning to price in eventual rate increases from central banks across all continents.
Representatives from the Bank of Japan have been busy lately trying to talk down the Yen from its strengthening position, urgently reminding markets that the BoJ is a long way away from raising rates, citing steady but still sluggish economic growth within Japan. A strong Yen threatens this precarious economic position, and the BoJ can be expected to begin taking measures to weaken the Yen if market sentiment persists.
6 February USDJPY Technical Forecast
Intraday support/resistance rests at the 109.00 psychological level and 109.30, respectively; on H4 charts, price has managed a decent drop below the 34 EMA, and continued USD weakness could see the bearish trend resuming after the recent retracement from 108.50; Daily charts have price trading further below the 200-day SMA, and yesterday’s close could be pricing in a bearish swing if market sentiment remains risk-averse.
Today’s pivot points:
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