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9 Feb 2015
Risk aversion supporting Yen – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, comments that increasing risks of a ‘Grexit’ are supporting a higher Yen, with USD/JPY expected to test 117.60/70 levels if the pair breaks below 118.40.
Key Quotes
“The USD/JPY retraced this Monday, rejected by the daily descendant trend line coming from last December monthly high.”
“The Japanese yen is higher as risk aversion took over stocks markets following the increasing risk of a ´Grexit´, the leading safe-haven alongside with CHF.”
“Technically, the 1 hour chart shows that indicators have corrected extreme overbought readings and now hover below their midlines, while 100 SMA crossed above the 200 one, well below current price.”
“In the 4 hours chart indicators have also corrected oversold readings, although they remain well above their midlines, limiting chances of a strong reversal.”
“A price acceleration below 118.40 however, should signal a downward continuation, with scope to test the 117.60/70 price zone.”
Key Quotes
“The USD/JPY retraced this Monday, rejected by the daily descendant trend line coming from last December monthly high.”
“The Japanese yen is higher as risk aversion took over stocks markets following the increasing risk of a ´Grexit´, the leading safe-haven alongside with CHF.”
“Technically, the 1 hour chart shows that indicators have corrected extreme overbought readings and now hover below their midlines, while 100 SMA crossed above the 200 one, well below current price.”
“In the 4 hours chart indicators have also corrected oversold readings, although they remain well above their midlines, limiting chances of a strong reversal.”
“A price acceleration below 118.40 however, should signal a downward continuation, with scope to test the 117.60/70 price zone.”