USD/JPY dips below 140 for the first time since September last year

There is still no shelter for the dollar in trading this week and we’re starting to see another big level come into play for USD/JPY. The 140.00 mark is a key one on the charts as it also acts as a major psychological level.

The lows from September last year held somewhat with the daily close coming above that. As such, a firm break below the figure level could really run some stops and deepen the rout that we’re seeing in recent weeks for USD/JPY.

As things stand, it’s still all about the flows and broader market sentiment. Traders are sticking with selling US assets across the board and that is not helping to see the dollar gather much reprieve. And in a time of massive uncertainty, the yen and franc continues to be the two main beneficiaries in the FX space.

On a break of 140.00, the 200-week moving average for USD/JPY will be the next key technical level to watch out for. That is seen at 137.96 currently.

This article was written by Justin Low at www.forexlive.com.