USD/JPY: 119.36 is key, downside exposed

By FXStreet FXStreet (Guatemala) – USD/JPY is building a case for lower levels, technically and fundamentally. The price has been stuck within familiar ranges since the fallout and the market’s nerves increasing in mid August, ahead of Black Monday, from above the 125.20 level.

The price has been unable to recover since, with the 200 DMA offering a strong resistance level at 120.87. Risk over China’s economy and Global knock effects has kept the Yen under demand while the increasing speculation that the Fed will not hike rates until 2016 is weighing on the greenback and exposes the downside in USD/JPY.

Dismall Nonfarm Payolls

Valeria Bednarik, chief analyst at FXStreet explained, “The dollar sold-off last Friday following the release of the US September employment figures, showing that the country added just 142,000 new jobs in the month, the worse so far this year, whilst wages saw no change during the same period, as average hourly earnings came in at 0.0% compared to the previous month.The data cast a shadow over a 2015 rate hike, fueling speculative selling of dollar’s holdings.”

USD/JPY will be interesting this week

However, the greenback was able to recover most of its ground before Friday’s close in the US …read more

Source:: FX Street