USD/JPY Loses Grip of 109.00 Handle
Ming Lam June 9, 2020 12:49 PM
USD/JPY has failed to post a sustainable rebound after yesterday's 1.1% slide...
The Japanese yen has strengthened up against the U.S. dollar after marking an intraday low of 109.85 to the greenback last Friday.
Yesterday (June 8) USD/JPY halted a four-day rally as it dropped 1.1% to 108.47, the biggest decline since March 27.
Traders attributed the currency pair's swift decline to profit-taking of USD/JPY long positions ahead of the U.S. Federal Reserve's two-day (Tuesday, Wednesday) monetary policy meeting.
As shown on an Intraday 30-minute Chart, USD/JPY has failed to post a sustainable rebound after yesterday's 1.1% slide.
Source: GAIN Capital, TradingView
Currently the descending 20-period moving average is capping any upside potential of the pair.
A Key Resistance is located at 108.55, which is a reaction high and is around the upper Bollinger band.
Unless this level is surpassed, USD/JPY should only seek Downside Support at 107.80 (61.8% Fibonacci extrapolation from a price floor at 109.35).
Below 107.80, the next Downside Support would appear at 107.40 (100% Fibonacci extrapolation).
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