The Nikkei Stock Average closed 4.6% lower and demonstrated the biggest fall since June 2013. The Japanese stock market index is falling for the fifth day. The Yen, on the other hand, is growing as investors are switching into the safe-haven currency amid stock markets uncertainties.
Today pay attention to the Fed’s Lockhart Speech at 10:55 pm (GMT +3).
At present, the movement in currency pairs is going to be determined by dynamics in stock markets. Until the current situation is not over, the tendency in the USD/JPY pair will continue.
Support and resistance
While the daily volatility in the pair is 168 points, today it already amounted to 180 points. If some positive news come out, the pair can rebound from the current support levels.
OsMA and Stochastic are in the oversold zone.
Support levels: 120.10, 119.50 (ЕМА200), 119.10 (100% Fibonacci).
Resistance levels: 121.15, 121.60, 122.00, 122.35.