USD/JPY (current price: 101.98)
The pair might turn out to be the most active one in the coming day, as there are contradicting expectations among traders regarding the next moves of the BOJ and the Federal Reserve. The U.S. economy is still growing slowly, while the Japanese economy is hovering on the edge of recession, as the FED is rumored to raise interest rates sometime this year, while the Bank of Japan looks undecided on the future of its benchmark rate. The pair is consolidating slightly above the 100 level that it violated during the Brexit-scare.
Our assessment: USD/JPY is still stuck in a declining long-term trend, although the pair is trading just under the upper boundary of the channel, with crucial, “line-in-the-sand” resistance ahead at 103.50.
