On Tuesday, the USD/JPY pair falls below the level of 101 as investors moved into the safety of the Japanese currency amid worsening risk sentiment.
On Wednesday morning, we are observing a technical correction. The USD/JPY pair pops above 101.
As MarketWatch reports, “The dollar weakened substantially against the yen in recent sessions, as investors opted to buy the Japanese currency on disappointment about surprisingly modest monetary easing by the Bank of Japan Friday.
In addition, the U.S. currency is under pressure amid doubts on the strength of the U.S. economy, which may prevent the Federal Reserve from raising short-term rates later this year.”
“With the dollar getting closer to this point, we could see it break below ¥100. That’s the level we saw last month,” said Ayako Sera, head of research at Sumitomo Mitsui Trust Bank.
The resistance levels for the US Dollar are 101.43 and 101.97
The support levels for the USD/JPY pair are following 100.67 and 100.20 [...]