Any upward move may not last
THE USDJPY has been bound up in a sideways range for the last two years since 2017, with the price moving consistently between a high of 114.50 to a low of 104.50. At the point of writing, USDJPY is at 106.28 after bouncing off the 104.50 support level. Following which, the USDJPY is showing slight signs of some upside with immediate resistances at 106.70 and 107.60. However, it is of our view that any upward moves for the USDJPY may not last.
Various factors could hint to this, with the most prevalent being the pessimistic state of the market in recent days.
Most investors would agree that there is a gloomy cloud of uncertainty and fear dominating the markets which is contributing to a strong risk-off sentiment wafting in the air. The clearest sign of this can be seen from the meteoric rise in gold prices which seem set to be rocketing towards US$1,600 per troy ounce.
