24 Aug 2015
USD/JPY: Rounding top breakout, room for further declines?
FXStreet (Mumbai) - The offered tone in the USD/JPY pair has slightly eased in the mid-European trades, with the Japanese yen retreating from fresh three-month lows versus the greenback, having witnessed rounding top bearish breakout earlier this session.
USD/JPY recovers from 120.26
Currently, the USD/JPY pair trades over 1% lower at 120.63, reaching fresh three-month highs close to 120 handle. The dollar-yen pair remains heavy as the JPY bulls ride higher on the front seat amid risk-off sentiment triggered by fresh sell-off in Asian equities led by China stocks rout.
China stocks rout accelerates as the State support fails to lift the market sentiment, resulting in broad global equities sell-off. While the US dollar continues to be relentlessly offered against its major peers as markets push back Sept rate-hike expectations after the recent dovish FOMC minutes.
USD/JPY Technicals
On daily charts, the major seems to have given a rounding top breakout to the downside with further declines likely below 120 levels. The pair continues to trade below most moving averages including the 200-DMA at 121.04 levels while the RSI hovers at 23.40 and aims lower supporting further downside moves.
To the upside, the next resistance is located 121.58 (Jul 7 High) levels and above which it could extend gains 121.93 (Today’s High) levels. To the downside immediate support might be located at 120.26 (Today’s Low) below that at 119.22 (May levels).
USD/JPY recovers from 120.26
Currently, the USD/JPY pair trades over 1% lower at 120.63, reaching fresh three-month highs close to 120 handle. The dollar-yen pair remains heavy as the JPY bulls ride higher on the front seat amid risk-off sentiment triggered by fresh sell-off in Asian equities led by China stocks rout.
China stocks rout accelerates as the State support fails to lift the market sentiment, resulting in broad global equities sell-off. While the US dollar continues to be relentlessly offered against its major peers as markets push back Sept rate-hike expectations after the recent dovish FOMC minutes.
USD/JPY Technicals
On daily charts, the major seems to have given a rounding top breakout to the downside with further declines likely below 120 levels. The pair continues to trade below most moving averages including the 200-DMA at 121.04 levels while the RSI hovers at 23.40 and aims lower supporting further downside moves.
To the upside, the next resistance is located 121.58 (Jul 7 High) levels and above which it could extend gains 121.93 (Today’s High) levels. To the downside immediate support might be located at 120.26 (Today’s Low) below that at 119.22 (May levels).