USDJPY trades 0.07% higher at 107.24 after the two days sharp correction from 2-month highs at 108.46. The pair stopped a 4-day rally after the worst than expected manufacturing PPI data from US and Eurozone. Investors turn their attention on safe-haven assets as worries of a global slowdown grow. Yen and Gold are the winners the last two trading sessions.
On the technical side, USDJPY failed to hold above the 100-day moving average and the correction find the price testing the 50-day moving average yesterday and today.The 50-day MA support looks strong for now and provides arebound today. The pair hit the daily low at 106.95 and the daily high at 107.29.
The positive momentum for USDJPY has cancelled now as the pair trades below the 100-day moving average and has returned inside the descending channel from which drives the pair since April. On the upside first resistance stands at 107.29 the daily high, a convincing break above will attract more bids that can drive the prices up to 107.73 the 100-day moving average. On the downside, immediate support for USDJPY stands at 106.95 today’s low while extra bids will emerge at 106.75 the loe from September 9th. USDJPY technical picture is neutral now as the pair trades between the 50 and 100-day moving average.Download our latest quarterly market outlookfor our longer-term trade ideas.
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