USD/JPY posts 0.28% loss while weakening to 108.13 on early Tuesday. The pair lately dropped to 107.92 under 100-bar SMA, however, oversold RSI conditions may have caused its pullback from May-June upside.
The quote’s weakness appears to take hints from the change in risk-sentiment that bolsters the Japanese yen.
Notwithstanding North Korea’s declaration to cut all Korean correspondence from the South, geopolitical strains in Libya likewise burden the market’s risk tone off.
On the other hand, the Labor Cash Earnings of Japan in April dropped drop over 0.6% prediction, which then urges the traders to anticipate May’s initial Machine Tools Orders, past – 48.3% earlier.
Traders on the buying side are less inclined to take new positions moving forward unless a reasonable break above 108.85 shows that it involves different high/low stamped last Wednesday and Thursday.
As such, the investors may intend to revive the monthly high past 109.85 while looking towards 110.
On the other hand, a reasonable break beneath 100-bar SMA and 50% Fibonacci retracement, close to 108.00 and 107.90 respectively, can get the USD/JPY prices to an uptrend from May 06, at 107.53 at this point.
You should note, however, that the pair’s further drop past-107.53 may pose a challenge to continue, as 200-bar SMA and 61.8% Fibonacci retracement offer solid support around 107.50/45.
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