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Felicia Tan
in
Forex
June 3 22:00

Yen broke through key technical support levels

Breakdown occurred amid the surge in activity in futures.
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Yen continues to fall as sales increase after a breakdown in key technical levels. USD/JPY rose 0.8% to 108.47 after moving above the top of Ishimoku cloud by 108.23 and 200 SMA by 108.37. Many stop losses are located at 108.60, according to traders in New York.
The spike in yen futures trading volumes came after prices fell below the 200-day moving average at 92.48 from 700 million, which was traded in just a 3-minute window.
The additional impetus for the growth of the US dollar against the yen was given by the short coverage in EUR/JPY that lasted for some time. The support is visible at 107.40/50.
The weakening of the yen is due to the comments of the People's Bank of China representative Pan about new monetary policy instruments besides quantitative easing.