Summary:
- Yen benefits from increased trade tensions
- USDJPY trades below the March’s lows
- The pair comes back to declines
The weekly chart shows that the USDJPY rebounded from the upper limit of the triangle pattern (the pair has been trading within this pattern since mid-2016). In addition, the 50, 100 and 200 WMAs keep moving close to one another suggesting a larger move could be in the offing. Taking into account where the pair was heading earlier one may suppose that a move below the lower limit of the triangle could be likely.
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Source: xStation5
In turn, the daily chart shows that the pair broke below the important technical support in the form of the recent lows from March. It suggests the pair could bea heading south in the short-term, and if this is the case, equity markets may underperform.
Source: xStation5
The short-term time frame resembles what we have seen above. Namely, the price broke through 109.8. The market came back to this level, retested it, and then began falling anew. We are currently seeing that demand for safe haven assets is rising. Further performance of the USDJPY could be affected by what will happen in the US stock market this afternoon.
Source: xStation5
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