USD/JPY soars from nine months lows, rises back above 103.00 as Wall Street tumbles
- USD/JPY consolidates recent bounce from multi-month lows despite risk aversion.
- Yen recovers versus G10 currencies on risk aversion.
The USD/JPY rose further during the American session and climbed to 103.25, 55 pips above the nine-month lows it reached earlier at 102.70. It rebounded sharply as equity prices in Wall Street reversed sharply to the downside.
The Dow Jones, the Nasdaq, and the S&P500 are falling by more than 2% after starting the year in positive ground. The sharp reversal in equities boosted the greenback across the board. The DXY erased losses and climbed back toward 90.00 after hitting under 89.40, the lowest level in more than two years. The VIX (fear index) jumped to the highest level in almost two weeks.
USD/JPY bearish but…
From a technical perspective, the reversal in USD/JPY could be positive for the greenback as it climbed back above 103.00. Still, the dollar needs to rise above 103.30/35 to gain support for a stronger recovery.
The long-term trend points to the downside. As long as USD/JPY keeps failing to consolidate under 103.00, the downside would remain limited.
Technical levels
Reprinted from FXStreet,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.