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2 Feb 2015
USD/JPY takes out stops sub 117.00
FXStreet (Bali) - USD/JPY traded sharply lower in inter-bank trading, breaking through key support area at 117.25/35, printing new lows at 116.66.
The rapid depreciation in USD/JPY appears to have been entirely stops-driven, with the pair extending the bearish momentum from late last week following a lower-than-expected US Q4 GDP print, which came at 2.6% vs 3.0% exp QoQ. The Japanaese Yen has been performing quite strongly during the month of January, as specs trim further shorts.
Valeria Bednarik, Chief Analyst at FXStreet, noted: "At this point, stops should be large below 117.00 so if triggered - confirmed -, the pair can make a quick run towards its next support, at 116.60. The top of the range stands at 118.80, and a clear break above it is required to see a shift towards the upside, quite unlikely at this point."
The rapid depreciation in USD/JPY appears to have been entirely stops-driven, with the pair extending the bearish momentum from late last week following a lower-than-expected US Q4 GDP print, which came at 2.6% vs 3.0% exp QoQ. The Japanaese Yen has been performing quite strongly during the month of January, as specs trim further shorts.
Valeria Bednarik, Chief Analyst at FXStreet, noted: "At this point, stops should be large below 117.00 so if triggered - confirmed -, the pair can make a quick run towards its next support, at 116.60. The top of the range stands at 118.80, and a clear break above it is required to see a shift towards the upside, quite unlikely at this point."