In view of the poor forecast/expected US NFP release on this upcoming Friday, the gradual flow of Dollars into Yen may be accelerated in the next two days due to risk aversion., resulting in the bearish USD/JPY pair.
FALLING BOND YIELDS are also helping to boost the yen as the US 2-year yield hit a new low of 0.526% and 10-year drops below 2.90%.
H1 USD/JPY
H1 USD/JPY(reduced view)
Looking at the H1, The PA is in the process of breaking down the Ichimoku cloud top and Tenkan -Sen line near 86.25, ( also close to the 23.6% Fibo Retr), Below this support (86.25) shall expose 85.92( 50% Fibo Retr) , follows by 85.80 ( 61.8% Fibo Retr, also near the Ichimoku Cloud Bottom ). At present, all indicators are pointing towards extreme bearishness.The downward momentum is very strong near term.
On the Weekly chart, the immediate support at 84.78 looks vulnerable, breaking this importance support level may expose 83.00 which is the psychological support level , bearing in mind that the 1994 low was registered at 78.46.
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