USD/JPY: bears breaking recovery support

By FXStreet FXStreet (Guatemala) – USD/JPY has been pressured lower again and is better offered in the open of Tokyo. Stock markets were mixed overnight and as was risk.

Oil dropped and the dollar was strong, but the yen was underpinned in cautious markets and in the classic flight to safety while the positive to me in China’s trade balance surplus surprise was short-lived and USD/JPY stepped aside at 118.05 to allow for a break of the 50 and 100 sma exposing current downside levels. Today, there is plenty of risk in the aussie jobs data coming up, yuan fix 45 mins later and then the Chinese stocks open and the Yen will be favoured on anything other than positive news.

USD/JPY levels

Technically, the bears have broken the recovery’s support line and Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart the 100 and 200 SMAs, maintain their strong bearish slopes far above the current level, while the technical indicators have turned strongly lower and point to cross their mid-lines towards the downside, in line with the shorter term outlook.
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Source:: FX Street