USD/JPY (current price: 104.47)
The Japanese Yen turned lower once again on Monday, pushing the pair back above the 103.85 resistance, despite the positive economic surprises. The Japanese Trade Balance and the Manufacturing PMI both came in above the expectations yesterday, but that wasn’t enough to keep the Yen in the green, as the Dollar rally during the Wall Street session pushed the pair higher. Rate hike expectations once again reached record levels, despite the sharp devaluation of the Chinese Yuan, as the U.S. economy continues to outperform its peers.
Our assessment: USD/JPY is trading in a short-term advance, although the long-term trend is still negative before the much-awaited FED meeting in November.
