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USDJPY Returns to Downtrend Channel

USDJPY Returns to Downtrend Channel
USDJPY Returns to Downtrend Channel

USDJPY is giving up 0.21 percent at 107.66 as risk off mood returns to markets. Earlier today the BOJ policy board member Funo, noted that there is no need to ease policy now and add any stimulus, while Prime Minister Abe, said that he wants the Bank of Japan to continue to pursue the 2% inflation target.

USDJPY dropped from 108.30 to 107.66 and return after two days above, inside the downtrend channel which drives the pair lower. Immediate support for the pair stands at 107.52 today low while extra support will be met at 107 round figure. On the upside first resistance stands at 107.91 the high during Asian session while 108 psychological level is next hurdle while a break above can drive prices up to 108.96 the high from May 31st. The Bearish momentum for USD against Yen is still intact and any strong upticks for the pair should considered as selling opportunity.

Yen traders will watch the macro news from US. The ADP Employment Change report, the US Trade Balance, Jobless Claims also the US Markit and ISM Services PMI and the Factory Orders will drive the pair later today.Don’t miss a beat! Follow us on Twitter.