FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen accelerated its rally in the American afternoon, leading to a USD/JPY decline down to the 118.80 region before the US closing bell.
Key Quotes:
"The pair posted a mild decline during the Asian session, following the release of Chinese inflation data for September, much worse than expected as the CPI rose by 0.1% compared to the previous month, when it rose 0.5%, whilst yearly basis, inflation was up 1.6% from the previous 2.0%."
"Trading at its lowest since October 2nd, the 1 hour chart shows that price holds well below its moving averages, and below the 38.2% retracement of its latest weekly decline at 119.35, while the technical indicators maintain their strong bearish slopes and are currently entering oversold levels."
"In the 4 hours chart, the technical indicators also present strong bearish slopes, despite being in oversold territory, supporting a bearish continuation, particularly as there are no buyers around, with the price holding steady near its low. The immediate support comes at the 118.50/60 region, from where the pair has bounced several times since late August. Should the pair extend below this area, the downside is open for a retest of the 116.13, the low posted last August."
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