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USD/JPY retreats from 1-month high


rockstar

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After peaking at 80.23 earlier on Thursday, setting a 1-month high in the wake of BoJ intervention, USD/JPY has turned lower, having dropped over 100 pips within the last hours as risk aversion re-emerged, with US stocks losing over 1% short after the opening.

 

USD/JPY fell to a low of 79.05 after the Wall Street opening and currently it is trading at the 79.10 zone, still up 2.7% on the day.

 

From a technical perspective, Slobodan Drvenica, analyst at Windsor Brokers Ltd, said, "Corrective pullback on overbought hourly conditions is under way, with reversal above 78.00 zone required to maintain near-term positive tone". He locates immediate support levels at 78.72, 78.25 and 78.03, while he sees resistance levels at 79.55, 79.68 and 80.00, ahead of daily highs at 80.23.

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