Dollar Nears Potentially Significant Breakdown versus Japanese Yen

By DailyFx | Updated August 12, 2014 AAA

DailyFX.com -

- Japanese Yen consolidating near make-or-break levels versus US Dollar

- Strong link to yields suggests recent moves in bonds favor the downside

- Watch for any sudden breakdowns on acceleration below ¥101.50

The US Dollar trades at potentially critical levels versus the Japanese Yen. Why might the USDJPY tumble to fresh lows, and how might we trade it?

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Dollar Trading at Potentially Critical Levels versus the Japanese Yen

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

Correlation to US Treasury Yields Underlines Key Risk to USDJPY

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Data source: Bloomberg, Prepared by David Rodriguez

US 10-Year Treasury Yield Testing Significant Support as Moving Averages Show Bearish Shift

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: TradingView.com, Prepared by David Rodriguez

Large Speculative Traders Remained heavily Long USDJPY, Warning of Sentiment Extreme

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: CFTC Commitment of Traders data, Prepared by David Rodriguez.

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Forex Correlations Summary

View forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

You May Also Like

Related Forex Analysis
  1. Forex News

    Euro Flounders at Yearly Lows as Likelihood of ECB QE Increases

  2. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  3. Forex News

    Japanese Yen May Resume Recovery on Year-End Capital Flows

  4. Forex News

    US Dollar Targets Fresh Highs versus Euro, but What Could Change?

  5. Forex News

    USD/JPY rises to 1-week highs

Trading Center