Yen Firms Up on Risk-On Sentiment
Ming Lam June 15, 2020 11:03 AM
In face of lingering risk factors, the yen, widely regarded as a safe-haven currency, is gaining an upper hand against the greenback...
The Bank of Japan will begin its two-day monetary policy meeting today, and the central bank is expected to keep its key interest rates unchanged in negative territory.
At the same time, investors seem stepping back into risk-on sentiment again amid worries about a second wave of coronavirus cases. China's capital city Beijing has been forced to lock down residential buildings and a large market amid newly-confirmed coronavirus cases.
On Sunday, Tokyo reported 47 new coronavirus cases, the biggest number since May 5, as the capital city eased lockdown restrictions.
Investors are also watching closely protests in the U.S. Another deadly police shooting occurred in Atlanta city of U.S. state of Georgia on Friday night leading to the death of a black citizen.
In face of these lingering risk factors, the yen, widely regarded as a safe-haven currency, is gaining an upper hand against the greenback.
On an Intraday 30-minute Chart, USD/JPY has repeatedly failed to break above the Overhead Resistance at 107.55.
Source: GAIN Capital, TradingView
Currently USD/JPY he returned to levels below both 20-period and 50-period moving averages.
It is even striking the Lower Bollinger Band calling for acceleration to the downside.
A lack of upward momentum is also evidenced by the relative strength index, which is subdued around 40.
A return to the Downside Support at 107.10 would open a path toward 106.85 on the downside (a key resistance level seen last Friday).
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