USD/JPY
The Japanese yen was caught between two fires yesterday - on the one hand, it was weakened by the US dollar, which was gaining strength in the broad market, on the other hand, it was fueled by the stock market, which was declining, and forcing investors to buy the yen as a safe haven currency. The main dilemma was whether the fall of the S&P 500 by 2.20% a temporary phenomenon or the beginning of a new wave of panic? As a result, the yen remained in the accumulation range of 106.88-107.75.
Today, in the Asian session, the price is trying to go up from the consolidation range, but around the 108.15 level, the price is waiting for the resistance of the MACD line on the four-hour chart.
Without breaking the downward trend, the price can reach this resistance, but it can rise even higher, to the MACD line on the daily scale (108.50), in this case there will be a clear exit from the accumulation zone and its expansion. When the price overcomes support at around 106.88, it will open a scenario for its decline to 102.50.
The material has been provided by InstaForex Company - www.instaforex.com