USD/JPY: Eyeing Up 108.000
Good morning Traders and welcome back to another sunny day here at the EverythingFX HQ in London.
The US Dollar is currently trading at 109.320 against the Japanese Yen during today's London session.
Let's get straight into it, from looking at the higher timeframes we can see price is free falling after rejecting our weekly at 112.000 with two consecutive trading weeks closing with strong bearish momentum. Dropping down to a daily timeframe we can see yesterday's daily candle come up to re-test the previous trading day's high at 109.760.
As mentioned on the EFX Technical Floor last week, we were anticipating a break of our level of support of 110.000 with a re-test before going lower. After bouncing off our minor level of daily support at 109.650 we can see that has now turned resistance I am expecting price to go on and potentially create a new low. Our next level of support for the pair remains 108.000 which is 130 PIPs from current trading price. What would invalidate this bias right now is a daily candlestick closure back above 110.000.
What I will be mindful of are the Retail Sales we have coming out later today in the US as well as Trade tensions between China and the US which tends to increase the volatility in this pair because of risk sentiment. Stay tuned to our Market News section as well as our Twitter Feed for updates on the news events.