USD/JPY bearish set-up for the New Year

By FXStreet FXStreet (Guatemala) – USD/JPY has stayed with the offer with higher oil, lower risk and stock markets and a reversal in sentiment for further easing, for now, from the BoJ after their recent tactical actions and minutes released overnight. The price is trading at its lowest point since late October and is diverging from the daily sticks cluster of key MA’s at the mid-point of the 121 handle.

Analysts at Scotiabank noted that Japanese data—employment, inflation and construction—are released overnight, but may not have too much impact on spot. “USD/JPY continues to range trade, albeit with a somewhat heavy tone this morning, despite renewed government pressure for additional BoJ stimulus. Cabinet Sec. Suga commented that the BoJ still has room to ease.”

USD/JPY levels

The analysts offered USD/JPY short‐term technical as bearish “USD/JPY might be the surprise package of the holidays. Price action looks weak and losses below support at 120.85 over the past few days (“cloud” chart base) point to more weakness ahead, potentially to 118.50/119.”
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Source:: FX Street