Greenback battered as banking crisis erupts.

“Safe-haven currencies such as Japanese yen received higher demand following Credit Suisse’s banking crisis.”

Japanese Yen rose on Wednesday following reports of “weakness” in Credit Suisse’s latest financial report that spark investor’s concern over possible banking crisis in the market. From Credit Suisse’s annual report for 2022, the bank noted that they have discovered some “material weakness” in its financial reporting. While the bank did not specify the issue, their annual report which was delayed for a few days raised questioning from Securities and Exchange Commission due to some revision that has been made in relation to cash flow. Following the release, the bank’s biggest backer, Saudi National Bank issued a statement on not inclined to raise their funding towards the bank, raising the difficulty for Credit Suisse to recover from their recent missteps and compliance failures.

Technical Analysis

USDJPY, Daily: The pair failed to close above the 200-MA line, staging a strong pullback thereafter. With recent closure below the support of 134.90 and coupled with bearish momentum from MACD, we expect the pair to extend its losses in the near-term.

Resistance level: 134.90, 142.35

Support level: 127.10, 121.45

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