Yesterday night, in the asian session, the Japanese government confirmed its economy is in recession, joining the US, Eurozone and UK, with high probabilities of contraction for two consecutive quarters. This way, the traders are speculating that the rates diferencial between high and low interest rates will be smaller, reducing the appetite for the carry trade.
The UsdJpy is trading at 97.14, ranging from 97.14 to 98.09. The current price is at yesterday's close at 97.14. Checking the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are under the 200-day EMA.
After the pair ranged from 94.47 to 99.48 in the last session, the traders are watching the supports at 96.08 (October 29th low), 94.37 (November 12th low) and 90.00 (key) and 87.95 (July 17th, 1995 low). The resistances are set at 98.07 (October 23rd high), 100.00 (key) and 102.45 (last week's high).
Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 53 points, rebounding from the overbought area. The average volatility per hour is 145 pips. Checking the graphics again, we see that the current price is under the 23.60% (130.80) and over the 0.00% (80.23) Fibonacci retracement lines.
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