The USD/JPY has revealed a wide descending channel. The event has taken place during the recent sharp waves of volatility caused by fundamental events.
From one side we have the USD surging due to the announcement that the FED will continue to decrease the USD supply throughout this year. On the other hand, the JPY was gaining value as a safe haven currency as soon as the Pakistani and Indian governments started shooting down each other’s planes.
Meanwhile, a technical cluster of support levels at 110.80 was providing the needed strength for a surge, which could reach 111.00 by the end of the day’s trading.
