With equity markets well off their earlier lows, the USD/JPY is also bouncing back, although it is not out of the woods yet with risks remaining tilted to the downside amid signs of weak inflation data and Trump's tariff threats.
Technically, the USD/JPY has been in consolidation mode, but a potential break of the trend line could trigger a sharp drop towards 142.00 and then 140.00.
For now, the trend line is providing support, but with the dollar slumping against other currencies, the USDJPY could also take a tumble should we see renewed weakness in stocks.
Resistance comes in at around 144.00.
By Fawad Razaqzada, market analyst with FOREX.com
Technically, the USD/JPY has been in consolidation mode, but a potential break of the trend line could trigger a sharp drop towards 142.00 and then 140.00.
For now, the trend line is providing support, but with the dollar slumping against other currencies, the USDJPY could also take a tumble should we see renewed weakness in stocks.
Resistance comes in at around 144.00.
By Fawad Razaqzada, market analyst with FOREX.com
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.