- Yen gains momentum after
USwithdraws from the Iran nuclear deal.
- USD/JPY hits fresh lows and rises back to 109.00.
The yen rose across the board after US President Trump announced the withdrawal from the Iran nuclear deal. USD/JPY dropped from 109.15 to 108.81, reaching a fresh daily low. Then rebounded as the USD recovered momentum and it was trading at 109.00/05, near the same level it closed yesterday.
US President Trump pulled the US out of the Iranian nuclear deal and re-impose sanctions. French President Macron said “France, Germany, and the UK regret the U.S. decision to leave the JCPOA. The nuclear non-proliferation regime is at stake.”
The USD/JPY pair continues to move sideways near the 109.00 area. It is consolidating after a pullback from 110.00. PPI data in the US is due tomorrow and on Thursday, CPI.
Levels to watch
On the downside, a consolidation below 108.80 would clear the way for a test of 108.50/55. Below, support levels might be seen at 108.25 and 108.00. On the upside, immediate resistance is seen around 109.10 followed by the strong 109.40 area (upper limit of current range) and 109.70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.