ZuluTrade Blog

USDJPY records new 7 week lows

Market View | Wednesday, June 7, 2017 4:36 AM GMT

Yen retraced significantly versus Dollar yesterday as traders practiced risk aversion. The pair approached the 7 week-low due to the weak financial data released for US as well the difference between US and Japanese bond yields that reached the lowest level in the past two weeks. Meanwhile, our focus now turns towards the Japanese GDP report and Chinese trade balance data for fresh push on the prices, as the US economic agenda today remains totally data-empty. The trading bias in the European and US stock markets could affect the pair ahead of the ‘Super Thursday’ due to UK Elections.  

Regarding USDJPY’s technical view, it broke the 61.8% to the downside. It is currently heading and testing a critical support zone (109.3 – 108.1), which may give the opportunity for buyers to step in. On the other hand, if price violates it, then we may see more aggressive selling pressure. RSI (14) isn’t yet oversold, but it’s very close. Going lower on hourly timeframe, the price remains below 200 SMA (bearish bias) while RSI (14) may give a positive divergence in the event of new low. 




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