7 Apr 2014
USD/JPY breaks into new lows
FXStreet (Bali) - USD/JPY is breaking below Friday's low at 103.20 to post a new low for the new week at 103.17.
The recent sell-off in US equities in the wake of a decent NFP last Friday, coupled with the decline to 2.72% in the 10-yr US yield, and a heavy Nikkei 225 since the get-go (down 1.58%), are all factors weighing in USD/JPY sentiment ahead of Tuesday's BoJ.
According to Jim Langlands, Founder at FXCharts: "Having made a new trend high (by one pip) at 104.12, we now have a short term double top in place, and by the negative look of the 4 hour charts it is not going to be worried again, at least for the coming session. The 100/200 HMA’s are at 103.60/103.00 (Daily Cloud top 103.10) respectively, and I suspect that for today’s session, these will provide the parameters."
"With the market generally running short of Yen, hoping for a hand from the BOJ at the upcoming meeting on Tuesday, these shorts may well be squeezed a little further, perhaps towards the 100 MA currently at 102.85, although I would be surprised to see it much below there today, and would tend to think of it as a potential buying opportunity", Jim added.
The recent sell-off in US equities in the wake of a decent NFP last Friday, coupled with the decline to 2.72% in the 10-yr US yield, and a heavy Nikkei 225 since the get-go (down 1.58%), are all factors weighing in USD/JPY sentiment ahead of Tuesday's BoJ.
According to Jim Langlands, Founder at FXCharts: "Having made a new trend high (by one pip) at 104.12, we now have a short term double top in place, and by the negative look of the 4 hour charts it is not going to be worried again, at least for the coming session. The 100/200 HMA’s are at 103.60/103.00 (Daily Cloud top 103.10) respectively, and I suspect that for today’s session, these will provide the parameters."
"With the market generally running short of Yen, hoping for a hand from the BOJ at the upcoming meeting on Tuesday, these shorts may well be squeezed a little further, perhaps towards the 100 MA currently at 102.85, although I would be surprised to see it much below there today, and would tend to think of it as a potential buying opportunity", Jim added.