The USDJPY pushed stops below the 106.00 level but managed to close the session back above the 106.00 key support.
The USDJPY broke down under pressure with yields falling and gold rallying, the natural path of least resistance for the pair was lower.
The USDJPY bounce may have stalled at the 50% retracement as we are building as ascending wedge.
USDJPY is rebounding higher after finding support at the confluence of the 88.6% Fib of the August low to the October high and the 141.4% extension of the October low to the November high.
Sometimes the best trade is “no trade” and that is probably the case with the USDJPY currently.
The USDJPY is in a triangle pattern and today’s lows coincided with the trend line that has been established all of 2018 (blue line).
The US equity markets are trading heavy after a strong selloff, is there more selling to come?
As the equity markets continue to extend their gains into the fall season, we continue to look at what the implications will be on currencies, and what potential outcomes we may have in the current environment.