Today we would focus our discussion on the USD/JPY currency pair.
In light of last week’s event where tensions rose between North Korea and the United States, the dollar lost positions against major currencies. On the other hand, the yen, which is considered by investors to be a safe-haven trading instrument, strengthened against several currencies.
Still, all around we are seeing the yen ease on the previous gains it made against other currencies. After it broke the bearish resistance of the channel, the pair moved into a bullish corrective wave. The general market expectation is that the pair will remain bullish at least for today. Right now the USD/JPY has rebounded from the sell area and we can start selling it if it reaches the nearby resistance level at 110.14. It is possible for the pair to drop back down to the support at 108.75.
The USD/JPY is showing a pivot point at the level of 110.37. We could see the pair retreat to support levels at 110.27 and 110.19 if it moves below the pivot. However, right now it is still trading around and a little bit above it. All major technical indicators agree on a strong buy signal.
