With
the start of the Donald Trump era the Japanese Yen is gaining strength, due to
the weaker US Dollar, which can also be seen with the EUR/USD today aiming to
fresh 2017 highs.
Last week the USD/JPY pair reached the lowest level for this year at 112.56,
but succeeded to escape. Despite the quick shift of the direction, the pair was
capped upside by the 50% Fibonacci retracement of latest December to January
decline at 115.64.
Today the pair marked an intraday high at 114.40 but couldn’t last long on this
level. The mood was shifted to lows even below last week;s closing price and
the current market price is 113.00.
As seen on the H4 chart USD/JPY is now well situated within a bearish channel
and holding below the 100-day and 200-day SMAs. Technical indicators remain in
negative territory and are supporting the bearish mode.
A possible consolidation around 112.50-113.000 would drag the pair away of last
week’s low. Below this area, the decline might continue towards the bottom of
the channel around 112.00 – 111.50. If crossing above today’s high US Dollar
bulls might return, but only in case of jumping above the upper border of same
channel. '
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