USD/JPY (current price: 103.88)
The Yen rose once again against the Dollar as global stocks remain under pressure, despite the recent bounce, helping the risk-off currency higher following the sharp Dollar rally of the previous weeks. The Fed’s next meeting remains in the center of attention, with the Bank of Japan still being undecided on its next step, while the Yen is holding on to most of its gains from the previous year, when it gained more than 20% on its major peers, including the USD, the Euro and the Pound.
Our assessment: USD/JPY is stuck right above the strong support zone near the 103.85 level after breaking out from a long-term declining trend, with an important resistance level ahead at 105.50.
