By Michael Baker

The Japanese yen has broken above yearly highs, pushing out of a sideways triangle continuation pattern that has been holding since May 2015. Any expected instability due to the trade war between China and US seems to be having only positive effects on the dollar, however, traders are concerned that the Yen is now losing its safe-haven attraction.

The next big level to reach will be the 61.8% fib which comes into play around 113.28, above here there is major resistance around 114.81 which has held highs for some time. The RSI is showing strongly overbought conditions but trading has not fallen too far from the highs all week suggesting buyers are still active and strong.

USDJPY Weekly Charts – Market Breaks To The Upside


Source: ETX Capital

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