The Japanese yen rose sharply yesterday, gaining 0.68% on the day. This reflects the market’s risk appetite. UK Prime Minister May wrote a formal letter to the EU seeking a delay to the country’s exit from the EU. The UK is expected to leave the EU on March 29 th . The extension will be discussed at the EU parliament today.
Will USDJPY Extend Declines Further?
Following the breakdown of prices near 111.40 level of support/resistance, the USDJPY currency pair fell sharply. This has sent prices close to testing the rising trend line from the lows of early January this year through the end of January. We can anticipate the USDJPY to briefly breach the trend line and test the lower support at 109.84 level in the short term. But we can rule out further gains below this support for the moment.
