Source: ForexYard
Yesterday saw the first real volatility in the USD/JPY since the MOF intervened. This morning’s low coincides with a key technical level.
The pair has fallen as low as 77.50, a 50% Fibonacci retracement from the 75.55/79.50 intervention rally and there may be scope for additional moves lower in the pair. A break of the 77.45 support from the mid-October highs cold have the pair testing both its 61% Fibonacci retracement at 77.07 as well as its 55-day moving average at 76.94. The bearish tone could be reversed with a move back above 78.25.
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