USD/JPY
The Yen reached an eight month high against the dollar before sharply reversing after hitting trend line support. Technical levels have started to increase in importance as the USD/JPY has started to lose its correlation to fundamental factors. Indeed, risk sentiment has seen its influence over the pair decrease to 40% from 48% a week ago. The past week has also saw expectations for a rate hike from the Fed decline which has lessened its impact on price direction. Additionally, the Japanese Finance Minister reversal on his strong Yen talk has raised the prospect of intervention and limited the risks that the new political regime will pressure the BoJ into a strong Yen policy.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
