Failure at Current Support Could See Major EUR/JPY, USD/JPY Selling
- USDJPY pressing range lows near 101.50 - watch under 100.75.
- EURJPY in ST triangle at trendline back to November 2012.
- US economic calendar caps off the week with U. of Mich Confidence.
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The Japanese Yen has seen its role as a safe have revived this week, in part due to diverging central bank easing expectations (the Federal Reserve backing off a hawkish tone and the Bank of Japan failing to ease more), in part due to a drive to safety amid global equities selling off.
The dynamic over the past two days has started to change: initially it was just US Dollar selling (USDJPY prices falling, EURUSD and AUDUSD prices rallying); now it's transformed into general weakness across the board versus the Japanese Yen. EURJPY and USDJPY are most vulnerable - see the video above for the levels we'll be watching headed into next week.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.