USD/JPY back in no man's land after a turbulent NY session

USD/JPY to crumble again or...?
USD/JPY not quite out of the woods yet.

Ross J Burland FXStreet

After a day caught between the ECB surprise and the Trump comments sending the dollar all over the place overnight, currently, USD/JPY is trading at 109.60, up 0.31% on the day, having posted a daily high at 109.79 and low at 109.19.

USD/JPY rallied on the Trump comments around the dollar when he was speaking in a CNBC interview, saying that he wants a 'strong dollar', and reiterating the comments that he had made in Davos earlier when he said that Mnuchin comments were taken out of context. He said that the dollar was going to get “stronger and stronger”.

The dollar's reversal

The dollar reversed to make a high of 89.5800 and a big figure higher than the lows of the day, closing near to the opening price of 89.2830 to end near enough flat on the day. US yields were in a range of between 2.61%-2.67% -0.97% on the day closing at 2.62%. USD/JPY collapsed to 108.49 before the Trump rally and a close of 109.40 after a high of 109.70 that was faded.

USD/JPY levels

Meanwhile, from a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that readings in the 4 hours chart support a continued slide ahead, as the price continues moving away from bearish 100 and 200 SMAs, while technical indicators stand in the extreme oversold territory, with the RSI heading south at 21. "The pair could correct higher on an advance above the 108.80/90 price zone, the immediate resistance, while a steady decline will likely expose 2017 low of 107.31."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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