FxWirePro: Yen extends bull run amid Brexit-driven risk-off, USD/JPY struggles to hold 106 handle
USD/JPY rejected at session highs by 106.40 as Yen extends bull run amid Brexit-driven risk-off. The pair is extending its downward trajectory for the fourth straight session this Tuesday. Sentiment across markets remain…
USD/JPY rejected at session highs by 106.40 as Yen extends bull run amid Brexit-driven risk-off.
The pair is extending its downward trajectory for the fourth straight session this Tuesday.
Sentiment across markets remains dampened by intensifying Brexit concerns amid a shift in votes towards the Leave camp.
Japanese finance minister Taro Aso crossed the wires earlier on the day, said closely watching UK referendum as it could have a major impact on markets.
He said that FX stability is extremely important and govt will respond to FX market as needed in accordance with G7/G20 agreement.
Markets expect no change in the monetary policy settings by both the Fed and BOJ. US retail sales data due later in the NA session will be watched.
Technically we see scope for further downside, the pair remains capped below strong trendline at 106.42 and 5-DMA at 106.65.
Little support seen on the downside till 105.55 (May 3rd low) and then 105.20 (Oct 13th low).
