USD/JPY: Further declines in the horizon - FXStreet

FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, notes that based on technical indicators, USD/JPY is expected to suffer further declines.

Key Quotes

"The USD/JPY pair lost over 100 pips last Friday, as exceptionally thing trading alongside with negative US data, sent US 10Y yields down to 1.80%."

"Next April 8th, the BOJ will have its monthly economic meeting, and although Kuroda talked about the end of easing a couple of months ago, there is still speculation the Central Bank may take further action."

"Technically the 4 hours chart shows that the price extended below its 100 and 200 SMAs, whilst the technical indicators head sharply lower below their mid-lines, anticipating some further declines, with the 118.32 level, last week low, as a critical support for the upcoming days."

"Something adding to the bearish case is the fact that the pair closed below its 100 DMA for the first time since August last year, exposing the pair to a deeper downward extension towards the 116.80 price zone, where the pair posted several daily lows in between late January and early February."

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