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Daily Chart
USD/JPY showing 1st sign of weakness since the Dec rally which saw price rose from 82.5 to a high of 88.4. Stochastic indicator is hinting to dip below 80, the confirmation for a Sell Signal after entering into Overbought region since 13 Dec. What makes the decline all more noteworthy is the fact that it happened on the day which Japan announced they will be purchasing ESM Bonds using their FX Reserves to stabilize Yen, which apparently is a new way of saying weaken. We have provided good reasons Hourly Chart
The hourly chart is still firmly in the bullish camp though, with price breaking upwards from the downward trending channel , and staying above interim support/resistance of 87.3. 87.7 may provide some resistance while a break below 87.3 opens up 86.9 and subsequently 86.5.
Other Links: USD/JPY Japan Announces ESM Bond Purchase
The decline underscores the waning ability of official loan data to capture the scale of debt in the world’s second-largest economy as borrowers and investors turn to less-regulated, higher-return shadow-banking products. The People’s Bank of China is putting greater emphasis on aggregate financing and the International Monetary Fund says the growth of nonbank credit poses new challenges to financial stability. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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