Japanese Yen gains as market seek for Shelter

Fundamental Analysis:

• Safe-haven play: The Japanese yen strengthened against its G7 counterparts in the recent session, particularly following President Trump’s long-anticipated announcement of worldwide tariffs on key U.S. trade partners. The move has fueled concerns over a potential global trade war, prompting investors to seek safe-haven assets.

Amid heightened market uncertainties, the yen emerged as a preferred refuge, appreciating by nearly 1.5% since the last session. Should risk sentiment continue to deteriorate, the yen may extend its gains, further pressuring risk-sensitive currencies.

Technical Breakout: USD/JPY has slipped below its previous low, reinforcing a bearish outlook for the pair. However, the key support level near 148.20 remains critical. If the pair continues to trade below this level, it will serve as a strong confirmation of sustained bearish momentum. A decisive break lower could trigger further downside, especially as safe-haven demand for the yen intensifies amid global trade concerns.

• Resistance and Support: The RSI has slip into the oversold zone while the MACD has gotten below the zero line and is diverging; in-line with the bearish view.

Potential Risks: A doji candlestick is spotted at the latest price action, it may be a trend reversal signal for the pair.

Monitoring: Stay updated on US economic data especially the NFP that is released tomorrow that could alter the price action for the dollar.

Open Your Free Demo Account And Start Trading Risk-Free

Join Now