December 10, 2022

Forex Solution

Learn To Trade Forex

USD/JPY keeps lower so far as sellers eye 109.00 level

1 min read

USD/JPY is down near the lows for the day at 109.12

USD/JPY D1 03-08

The pair is weighed down to start the week after the bid in bonds yesterday sank 10-year Treasury yields to its lowest level since 20 July.

Daily support from the June lows @ 109.19-20 is being checked right now but key support is seen from the July low @ 109.06 as well as the 109.00 handle in general.

If the latter gives way, it will be painful blow for buyers from a technical perspective – breaking the 61.8 retracement level of the April to July upswing @ 109.07.

That will leave a pocket of space for sellers to roam towards 108.50-60 next and then the May lows around 108.34-35 before potentially revisiting the 108.00 level.

It’s all about risk appetite for the time being as COVID-19 fears start to return to the table but the key risk event to watch for the yen and the bond market may yet be the US non-farm payrolls report on Friday.

That will be where the market may look to gather hints about the Fed’s supposed “substantial further progress” and gauge whether or not there is enough improvement in labour market conditions to perhaps think about a Jackson Hole pivot.

Invest in yourself. See our forex education hub.

Source link

Copyright © All rights reserved. | Newsphere by AF themes.