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USD/JPY Extending Longest Losing Streak Since November

  • USD/JPY already securing the sixth consecutive session of lower lows today, with the losing streak extending through the 50-dma support and swinging the 14-day RSI closer to technically oversold territory (although not there yet, RSI currently at 37 points - lowest since January).
  • This marks the longest streak of lower lows since early November last year - a week or two after the last confirmed Japanese FX intervention on 24th October. In early November, lower lows were printed over 8 sessions, spanning a fall of over 7% in the pair.
  • Rate differentials and a touted unwind of JPY shorts remain largely responsible for the move - the last CFTC CoT report (as of July 4th close) showed speculators holding the largest net short JPY position since 2018.
  • Support undercuts ahead at 139.18, the 38.2% retracement of the Mar 24 - Jun 30 bull leg and the Jun 9 low of 138.76.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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