USD/JPY (current price: 100.94)
The Japanese Yen continued its strong rally yesterday and the number one risk-off asset is trading higher against the other majors today in early trading as well. The pair lost 200 pips in two days, despite the Dollars broad strength against commodity currencies and other riskier currencies, as the Pound weighed on global sentiment. The cross is now close to testing the all-important 100 level with last week’s lows also looming below that at 98.50. The Bank of Japan will likely try to stop the move, but the central bank hasn’t been successful in holding back the Yen recently.
Our assessment: The Yen continues to trend relentlessly compared to its peers and the pair looks ready for another swing lower as it’s headed quickly towards its recent lows.
