6 Jan 2015
USD/JPY sets new 2015 low, threatens daily kijun
FXStreet (Bali) - With the Nikkei 225 in Japan down almost 3%, in line with current global risk off conditions, USD/JPY continues to trade heavy, setting a new low for 2015 at 119.08.
On Monday, price broke below the daily Tenkan at 119.80 with safe haven bids returning, as the S&P500 tumbled over 1.85%, with the daily Kijun at 118.70 now the next obvious target to the downside should the depressed risk environment persist. So far, there is little indications suggesting a sudden return of risk bids, which coupled with a potential double top at 120.70, further profit-taking in Yen shorts looks possible.
Jim Langlands, Founder at FXCharts, notes: "Further short term losses look possible, with support now seen at 119.00 and then at last week’s spike low at 118.85. Under this there will be decent support levels at the daily Kijun at 118.70 and then at the rising trend line, currently at around 118.35. On the topside, 120.00 now becomes the immediate resistance ahead of the session high at 120.64."
On Monday, price broke below the daily Tenkan at 119.80 with safe haven bids returning, as the S&P500 tumbled over 1.85%, with the daily Kijun at 118.70 now the next obvious target to the downside should the depressed risk environment persist. So far, there is little indications suggesting a sudden return of risk bids, which coupled with a potential double top at 120.70, further profit-taking in Yen shorts looks possible.
Jim Langlands, Founder at FXCharts, notes: "Further short term losses look possible, with support now seen at 119.00 and then at last week’s spike low at 118.85. Under this there will be decent support levels at the daily Kijun at 118.70 and then at the rising trend line, currently at around 118.35. On the topside, 120.00 now becomes the immediate resistance ahead of the session high at 120.64."