USDJPY plunges to August lows


Friday was a bad day for the US dollar, with the greenback down sharply against most of its major peers. The USDJPY pair was down one percent during the US session, trading near 105.40, which are two-week lows for this pair. 

The strong support zone seems to be in the 105.10 - 105.40 zone and is currently being tested. If the greenback declines below this support, larger stop-losses could be hit, which might push the USDJPY pair further lower. 

The next target for bears would then be at 104.20, where July's lows are located. 

Alternatively, the resistance seems to be near 105.80 and while the USD trades below it, the short-term outlook appears bearish. Another selling zone will most likely be at 106.00.

Yesterday's Fed decision was very dovish, which sent stocks higher and the greenback was sold-off notably.

 Since this is a long-term issue, the USD should remain under selling pressure and any rallies are expected to be sold. 
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