Investors continued to remain cautious despite the market’s moderate risk appetite. This was reflected in the safe haven yen which managed to rise modestly on the day. The yen posted modest gains of 0.15% on the day after previously easing back. The better than expected trade deficit figures from the U.S. helped to soothe investors’ nerves.
Is the USDJPY Reversing?
The USDJPY currency pair failed to capitalize on the gains from Tuesday and price action has been trending lower in the near term. With price above the support level of 109.84, we expect the minor correction to be limited. However, if the currency pair breaks the support, then we could expect a deeper correction to the downside. For the moment, we expect USDJPY to stall its pullback and resume the move to the upside.
