Dollar loses more ground versus yen

Yet another session has begun with declines for USD/JPY, but we are heading towards recent lows that have seen significant support.

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.

Spot FX USD/JPY chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.