Technical Analysis Post
USD/JPY Set to Edge Lower?
The USD is currently gaining momentum but as stock markets are seemingly depreciating, we might see the JPY taking over. In an attempt to regain safe-haven status the Japanese Yen shows signs of progress, especially with the technicals and fundamentals aligned currently. Following the recent downtrend, the JPY could therefore appreciate further.
While the dollar is currently gaining momentum, clinging to new gains, the Japanese yen is also showing newfound strength as investors turn to safe-haven assets amid a broader loss of risk-appetite. Softening U.S. economic data and rising global coronavirus cases are bound to keep investors cautious. The stock markets have long been overbought and are now at a tipping point, we would therefore expect demand for safe-haven assets and currencies like the JPY to rise in the upcoming weeks. We would like to sell USD/JPY at 103.70 with SL at 104.10 and TP1: 103.00 and TP2: 102.50.