USD/JPY: The Meltdown of Dollar Yen! Approaching 108.000, Where to next??
Good morning Traders and welcome back to EverythingFX.
The US Dollar currently trading at 108.346 against the Japanese Yen during today's London session.
Seeing as the monthly candle recently closed it's only right that we take a look to see where we heading next. Looking on the monthly timeframe we can see we have a very bearish candle engulfing 4 prior months indicating a lot of bearish momentum.
Shifting over to a weekly and daily timeframe we can see we have been sliding down ever since we broke back below our monthly of 110.000. Looking on a 4-hour we can see there was a good level of support around 109.000 where I do personally think we are going to get a re-test before heading lower. Overall swing target remains 106.000 providing us with a good 300 PIPs upon a re-test. What would invalidate this bias right now is a daily break of 110.000.
Fundamentally we have US President Donald Trump who remains in the spotlight after adding 5% tariffs on all goods to Mexico which decreases investor confidence in the US, in return strengthening safe-haven assets, one of them being the yen, assisting in driving this pair lower. However, data-wise, we have US PMI's as well as ISM Manufacturing PMI's later today alongside several Fed members scheduled to speak. Keep your eyes peeled on our Market news section and Twitter feed for updates.