USD/JPY : Strong downside potential
With risk appetite having fallen around the world, the bears dragged the USD/JPY down to its largest five-day drop in almost two months on Friday on speculation about an expansion of stimulus efforts form the BoJ at the October 30 policy meeting. If one also considers the latest US economic data that have been increasingly topping economists’ expectations, it looks like there are choppy waters ahead for the Japanese yen. At 79.60 this morning the pair is in undecided territory. First target for the bears to watch sits at 79.28. A break below that level would expose the 78.77 area. Although an alternative scenario is hard to imagine, only a break above 79.95 could delay the downtrend movement. Keep an eye on the US economic calendar as another potential source of Yen volatility.
The comment in this blog is the personal opinion of the contributors and not Intertrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. Intertrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.