Yen demand returns in today’s Asian session
Majors in mixed states of decline as Japanese Yen gains in today’s Asian session.
The JPY has continued to consolidate earlier gans we today’s Asian session progresses. While risk see’s gains to the USD it’s not the case for the other main safe-haven currency. At this stage, all of the majors are tracking lower with the AUD and GBP holding out the best atm. The EUR and USD are seeing the heaviest falls.
The USDJPY is currently just over 1% lower today after yesterday’s heavy sell-off that took 1.44% off its value. U.S. jobless claims compounded an already weak USD jumping to 3283K hammer home impact COVID19 is having on the local economy.
Another that’s deep in the red today is the EURJPY, currently 0.76% lower in today’s session.
Looking at the daily EURJPY chart we can see the key resistance at 121.05 that continues to stop buyers. This week buyers broke the med-term downtrend, at this point buyers have started to see some demand from 119.60 – 119.80, this area holds just above the old downtrend line which can be seen as bullish if price closes above that point.
If the new trend is going to remain in play we would like to see support develop from this area, a break of resistance could be further confirmation buyers continue to hold the numbers. Further extension lower by sellers continues to validate the key resistance and suggest buyer numbers could be lowish. Both sides would be looking for new evidence to confirm direction.