Japanese Yen Forecast: Key USD/JPY Levels to Watch
Japanese Yen Analysis and Talking Points
The Japanese Yen is softer to begin the week as risk sentiment remains robust having recovered from last week’s dip. That said, recent price action in USD/JPY signals a lack of conviction among traders with the pair somewhat rangebound. Given that the macro risks persist amid the potential threat of a second wave of coronavirus cases, alongside rising US/China tensions, the looks to be on the downside.
Japanese Yen Technical Levels
On the technical front, key support at 106.70 (50% Fibonacci retracement) has stemmed further downside for now. On the topside, option strikes ($2.2bln) at 107.50 may contain spot prices, while notable resistance is situated at 107.75-108.00. However, failure to upside USD/JPY at 108.00 may alleviate downside risks in the pair.
USD/JPY Price Chart: Daily Time Frame
Source: IG Charts
--- Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.