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Forex pairs in this Article » USD/JPY
FXstreet.com (Athens) – The USD/JPY has been trading under heavy pressure and well under its 200-daily SMA (97.32) since the start of the Wellington trading session, but exactly at 3:00 GMT hours, it fell apart below 97.00 area.

USD/JPY tumbles alongside with Nikkei; due to China’s 7-day Shibor up 140bps on the week

The USD/JPY has been under heavy pressure since the early Wellington opening trading session, but exactly at the 3:00 GMT it failed to sustain the 97.00 handle, as Nikkei fell also sharply downwards. Looking behind the curtains, we could point out that market participants should take take upon deep consideration the fact that the cross fell sharply in tandem with the Nikkei index (now down by 2.45%), when the PBoC mentioned through news wires that “new rate to further promote interest rate liberalization", and to be more precisely, at the exact same time, as China fixed the 7-days Shibor at 4.89pct (up 140bps on the week).

Technical Aspect on the USD/JPY

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/JPY has eroded the 200 day ma at 97.35, and sold off to the 4 month support line at 96.95, this guards the current October low at 96.55 and the six month support line at 95.93. The market has been contained in a large contracting range for the past 6 months and currently we have no real indication that the market is ready to break down through 95.93, but there is scope to test this level.”
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