- USD/JPY hits a 5-month low of 108.12 on Monday as yen remains bid on heightened North Korea tensions.
- Tense standoff between the US and North Korea continues despite North Korea’s failed missile launch.
- Risk-off tone could worsen as the week progresses, keeping safe-haven assets well in demand.
- USD/JPY dips below the 200-DMA for the first time since November 11, we see more downside.
- Dismal US CPI reading along with lower-than-expected US retail sales last Friday add to weakness in the pair.
- Price is moving with a clear bearish trend with next major support seen around 106.38 (61.8% Fib).
Support levels - 108, 107.77 (Nov 15 low), 107, 106.73 (Nov 14 low)
Resistance levels - 108.72 (50% Fib retrace of 98.78 to 118.66 rally), 108.91 (5-DMA), 110
TIME TREND INDEX OB/OS INDEX
1H Slightly bullish Neutral
4H Bearish Oversold
1D Bearish Oversold
1W Bearish Neutral
Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-holds-200-DMA-support-weakness-only-on-break-below-644096).
Recommendation: Bias lower, stay short, hold for targets.
