USD/JPY (current price: 103.87)
The Japanese Yen followed the Euro and the GBP lower against the USD on the relatively quiet session, as the uncertainty regarding Friday’s flash crash cleared, and the safe haven currency resumed its short-term downtrend after the brief correction. With partial bank holidays in North America and Japan, intraday volatility was low and that helped risk assets globally in rebounding after last week’s nervous trading. The cross is back near the 103.85 resistance zone with another crucial level looming at 105.50 following a multi-month consolidation.
Our assessment: USD/JPY is still trading in a long-term downtrend although the divergence in the MACD momentum indicator might hint on a more sustainable move to the upside, especially if the FED hikes its benchmark rate in November.
