Morning Preview: How Far Can the USD/JPY Tank?
Rowan Crosby • 1 min read
After a long weekend in the states, US traders re-entered the market on Tuesday and they came back in with a bang. Equities markets felt the brunt of their dissatisfaction along with the USD which sold off sharply.
Continued tensions with North Korea haven’t helped things we saw the safe-havens such as gold and the Yen continue to hold up. What’s interesting is we haven’t yet had the retrace that we’ve seen in the past when there has been news hitting the headlines on North Korea. The fact that they appear to be resolute in what they are doing and not that interested in slowing down.
Has the USD/JPY Hit Support?
The Yen has been really strong over the last few days and has broken down through support at 109.00. I haven’t had a strong opinion thus far as I wanted to see what might happen when US traders came back after their break – and rightfully so.
Now however I’m looking for a rebound back through 109 and for it to hold in Asian trade. I’m not expecting any follow through just yet. I’m looking to go long at 108.50 for a bounce back to 109.