USD/JPY: Looking to springboard to 108.000
Good Afternoon Traders welcome back to EverythingFX!
The US Dollar is currently trading at 106.430 against the Japanese Yen during today's London session.
Like most of the Yen crosses sliding we have seen our support of 106.000 psychological level hit. Looking at this from a daily timeframe we can see we have been trapped in a range of 170 PIPs given from the spike down at 105.000. With a minor level of resistance in and around 106.750, it is imperative that we get a break to then anticipate a further move to the upside.
After the market moves so aggressively we know that we need some sort of correction. Majority of the time a correction comes in the form of an area of consolidation. The highest probability is then waiting for a break out to know that momentum has officially shifted, to then provide us with an opportunity to take advantage of this. Like indicated on the screenshot above we could potentially have one last drive into 106.000 before looking for any sort of bullish reversals to take this back to the upside with our weekly resistance in mind of 108.000 providing us with a good 200 PIP move to the upside upon a rejection.
Fundamentally, we know the pair is a good barometer of over global risk sentiment. Seeing as US President Donald Trump has put a pause on the Chinese tariffs we have seen a flow out of safe-haven currencies essentially what has caused the slowdown in this pair, so provided nothing changes I don't see why we can't have a correction on this pair. With so much pressure being put on Fed Chair Jerome Powell it will be interested to hear what he's stance will be at the Jackson Hole Symposium for the economy going forward. Stay tuned to our Market news section and social media accounts for updates.