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The general risk-off atmosphere has seen traders shift away from the dollar and towards its Japanese counterpart, worried by slowing Chinese growth and increasing tensions in Ukraine and Crimea.
Having stalled just above ¥103, we are now seeing the currency pair testing the lows that held throughout February, around ¥101. It also brings us closer to a rising 200-day moving average, so we look to be heading towards a ‘make or break’ moment in this currency cross.
Any drop below here would see the November low of ¥98 come into play, but for now the outlook remains a cautious ‘sell’ here, given the short distance we have until support could potentially be found.