Similar to the price action on Gold, as uncertainty in the market grows and confidence over the banking structure weakens, investors are seen shifting towards reserve commodity and currencies.
This is why the Yen has strengthened, together with the weakening of the DXY, leading to the USDJPY being pressured to trade steadily lower.
The USDJPY currently trading at the 132 price level could see further downside
- if the price maintains below the bearish trendline, and
- if the price breaks below the 131.50 support level.
Downside potential could see the USDJPY reach the 129.80 support level which was last tested in February.
Alternatively, if the USDJPY bounces strongly from the 131.50 support level, the immediate resistance level is at 133.75 which coincides with the 61.8% Fibonacci retracement level (with an interim resistance level at 132.60)
This is why the Yen has strengthened, together with the weakening of the DXY, leading to the USDJPY being pressured to trade steadily lower.
The USDJPY currently trading at the 132 price level could see further downside
- if the price maintains below the bearish trendline, and
- if the price breaks below the 131.50 support level.
Downside potential could see the USDJPY reach the 129.80 support level which was last tested in February.
Alternatively, if the USDJPY bounces strongly from the 131.50 support level, the immediate resistance level is at 133.75 which coincides with the 61.8% Fibonacci retracement level (with an interim resistance level at 132.60)
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