VOT Research Desk
In Tokyo, the USD/JPY pair fell precipitously, giving up the round-level support of 139.00. The asset is under tremendous pressure as a result of the US Dollar Index’s (DXY) sharp sell-off.
The appeal of safe-haven assets has diminished due to investors’ increased risk appetite. On an hourly scale, the major has shown a breakdown of the Head and Shoulders chart pattern, which denotes a bearish reversal.
The US Dollar has been hampered by a slippage below the neckline established from the low point on December 6 at 135.96.
In addition, despite the Japanese yen’s rise, the asset has been unable to maintain its position above the 200-period Exponential Moving Average (EMA) at 137.10.
The asset has to fall beneath Friday’s low at 135.77 to experience more decline.
which will push the asset toward Wednesday’s high at 137.86. Alternatively, a break above the 200-EMA around 137.00 will push the asset toward the round-level support at 135.00, followed by the December 5 low at 134.13.
If the latter is broken, the pair will be more open to further gains toward the November 25 high at 139.60.
