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USD/JPY has been on the bid in Tokyo, however, bulls have been capped and the price has flipped over in  suit  with the general risk-off theme.

President Donald Trump called for the EU and China to remove trade barriers and tariffs, or face the consequences. Currently, USD/JPY trades at 109.58 from a high of 109.75 and a low of 109.50.  

Global trade tensions remain in focus, watching the greenback – TDS

USD/JPY fell from 110.03 overnight and a test of the 100-hr SMA at 110 the figure. Stocks were falling off a cliff and the VIX was at its highest since April which leaves the upside exposed to fading. The US 10yr treasury yields were in a lower range of 2.86% and 2.90%, while the 2yr yields ranged between 2.52% and 2.55%. Fed fund futures yields continued to price 1 ½ more hikes in 2018.  

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USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the pair finally moved away from  its  100 and 200 SMA: “it bottomed at a Fibonacci support, although a more relevant one comes at 109.20, June 8th daily low.” In the mentioned  chart, she adds that the Momentum is advancing within  negative  territory, far below its daily high, while the RSI indicator turned back south,  currently  around 37, arguing that this is skewing the risk toward the downside.