The USD/JPY pair is meandering near fresh four-month lows, with downside opening up for a test of 200-DMA support at 109.20, as the bears remain in control amid risk-aversion at full steam.
Risk-off persists at the start of a brand new week, as treasury yields and equities are sold-off.
USD/JPY Technical levels to watch: The major finds immediate resistance at 110.68 (daily pivot). A break above the last, the major could test 110.87/111 (5-DMA/ round figure) and 111.31 (classic R2/ Fib R3) beyond the last. While to the downside, the immediate support is seen at 110.05 (classic S2/ Fib S3) next at 109.68/50 (classic S3/ psychological levels) and below that at 109.20 (200-DMA).
Avg Sell Price: 96.66
Avg Buy Price: 112.68
Our Latest Recommendation: It is recommended to SELL.
The USDJPY was indecisive last week. The “hammer” bullish reversal signal remains valid although we haven’t seen a convincing and strong/consistent movement above 111.30 key level area so far. The bias is neutral in nearest term. Immediate support is seen around 111.00. A clear break below that area could trigger further bearish pressure testing 110.70/50 area but key support remains at 110.10. Immediate resistance is seen around 111.60. A clear break above that area could trigger further bullish pressure testing 112.00 or higher.
NZD / USD outlook on 05/04 The NZD / USD pair broke down steeply throughout the trading day yesterday when it broke the support levels firmly. The lowest lows on April 4 were recorded at 0.6968 and the market is still clinging to this bottom. Any effort to increase correction in this morning is not enough to set the candle to the resistance level 0.6985 as well as out of the channel downward trend lasted from yesterday. Prices are in the downtrend channel H4 and continue to test the trendline below this many times yesterday and this morning. A breakout will form a strong bearish trend with a target of 0.6920 - 0.6930. Waiting is needed at this time and the zone on the SELL should be at 0.6975 - 0.6980. Expect that the downtrend will be the main trend of the day and soon appear in early Europe. Resistance: 0.6985 - 0.7015 - 0.7030 Support levels: 0.6960 - 0.6945 - 0.6920
The JPY bulls are back in action amid a turnaround in risk sentiment, as the Asian stocks turned negative in sync with the treasury yields, knocking-off USD/JPY to fresh session lows at 110.54, where it now wavers.
Currently, USD/JPY is trading at 110.69, down -0.05% having posted a daily high at 110.91 and low at 110.54.
The Dollar-Yen pair remains well bid in Asia with treasury yields showing signs of life following Friday’s surprise drop in the US unemployment rate.
The spot was last seen trading around Friday’s high of 111.36. The 10-year treasury yield recovered from the low of 2.269% to 2.382% on Friday and was last seen trading around 2.388%.
DOUBLE BOTTOM REVERSAL ON CHARTS The daily chart now shows a double bottom reversal formation with neckline resistance at 112.20, courtesy of Friday’s rebound from 110.09 levels.
USD/JPY TECHNICAL LEVELS A break above 111.60 would expose 112.00 and 112.20. On the lower side, breach of support at 110.98 would open doors for a re-test of 110.61 and 110.09.
OUR RECOMMENDATION Markets may correct this week. 110 is a tough nut to crack but Currently, USD/JPY is trading at 111.43, up + 0.31%, having posted a daily high at 111.58 and low at 111.01. And the safe haven yen could find more buyers. So, it is recommended to BUY.
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