The Yen Hits Key Support: Can it Hold?

The Yen has fallen away in a quick sharp move and has bounced off key support at 110.00.

I expect the 110.00 to act as a short term support level and the price will likely bounce around a bit, but I’ll be looking to see whether it can consolidate below. Then we know we have the potential for another leg lower.

We only took out 111.00 in recent days and the momentum is strong to the downside on the back of USD weakness.

The trendline on the 15-min chart is potentially a good spot to attempt a short, looking for a retest.

Data

Earlier Japan’s Manufacturing PMI came in at 52.1 which was a little a little lower than the forecast number of 52.2.

The Nikkei has started to move higher today however it's currently around the unchanged mark.

The USD has a big week ahead with NFP on Friday the key event for traders.

Note: We have a JGB auction to look out for which could impact the Yen further.