USD/JPY drops further in European trading

The USD/JPY has been declining for most of the day, and the European afternoon session was no different.

Risk aversion increased investor flight which has boosted the yen while, in the US, disappointing economic data has hit the pair’s strength even further. FX Instructor analyst Mark De La Paz said that the bearish engulfing in hourly charts proves a bearish trend overall. He explained that with a moderate resistance of 78.98, shorts from the said price should be considered with stop losses above it. He added that, alternatively, stops could be put above the pattern high.

After trading as high as 79.30 during Monday’s Asian session, the pair has plummeted and is currently trading around 78.72, falling at a rate of -0.68 per cent. Windsor Brokers Ltd analyst Slobodan Drvenica said support is at 78.50, 78.20 and 77.95, while resistance is at 79.25, 79.55 and 79.80.