TechnoMeter

USD/JPY has now fallen to levels not seen since late 2016 before Dollar’s ‘Trump trade’ bounce, which came as markets got used to the shock election of the current US President. Moreover, there are few obvious signs that a turnaround is in sight.



The pair is certainly lower now that it was then, but it seems to be making a moderate attempt to base around the 105.40 area which has held for the past four days or so. As you can see from the chart below this area is closer to the channel’s top than it is to its base.

Should these levels continue to hold then US Dollar bulls might fancy the chances of a foray towards than channel top. However, that’s still almost a full Yen above current levels and it’s hard to see where that sort of momentum will come from on current showing. There’s also likely to be a degree of fundamental caution this week thanks to the wait for Friday when official US payroll data will be released.

more...