USD/JPY (current price: 106.48)
The Japanese Yen remained in the centre of attention on Friday as most pairs and commodities were tracking the currency, especially the Yen-Dollar cross. USD/JPY fell by an incredible 600 pips (more than 5%) in two days, to a new 18-month low near the 106 level. The next major support zone is between 10 and 105.25, which might be a good starting point for a bounce in the pair. Today’s session will be dominated by U.S. economic news, and we have seen a lot of disappointing data points lately.
Our assessment: Volatility is likely to stay high in the pair, and it has already been elevated in early trading, with technical levels playing a large part today. Traders should be careful, as violent moves are possible around today’s releases.
