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USDJPY Analysis: Weak After Plunge

The US Dollar remained stable against the Yen on Monday until strong bearish momentum mid-session took over the market. As a result, the pair breached all three SMAs and the up-trend circa 109.00 and consequently plunged 1.04% throughout the day.

By Tuesday morning, the Greenback was showing some signs of recovery; however, it does face the previously breached support levels which have become strong resistance. Thus, it is likely that the pair remains tended southwards today.

The nearest support is set by the bottom line of a five-month descending channel located near the 108.00 mark. In terms of resistance, gains should be capped near 109.60.

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Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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