The fallout from Trump’s Muslim Ban continues. The new President of the US caused chaos with a messy executive order over the weekend, banning entries to the US from 7 predominantly Muslim countries. These did not include ones that Trump has personal business interests in.
The latest development is the firing of interim Attorney General Sally Yates. She has been temporarily holding the post until Trump’s nominee Jeff Sessions is confirmed. Yates refused to defend the ban in courts, saying it is unlawful.
The mess in US airports, US courts, and the international criticism has weighed on stock markets. In the world of currencies, the haven Japanese yen is the primary beneficiary. The Japanese currency regularly attracts money in times of trouble, even if the trouble is brewed in Japan.
In Japan, the Bank of Japan left the interest rate unchanged and did so also for the QE program. The current rate decision from Kuroda does not come as a surprise. They still aim for reaching the 2% inflation target at the end of the 2018 fiscal year. The lack of any boat-rocking from Japan means that the recent moves are US-related.
Here are the latest moves on the dollar/yen chart. Support awaits at 113, the round number that provided support last week. This is followed by 112.50, the low seen on January 24th. Even lower, 11.40 is the final line before a round number of 110. On the upside, 114 looks like a separator of ranges, followed by 115.30.
More: USD/JPY: To Rise To 120-125 After N-Term Correction Into 110-115 – Deutsche Bank
Get the 5 most predictable currency pairs