FxWirePro: Maintain long positions in Yen despite recent sell-off

Yen suffered sell-off as risk aversion faded,

• After strengthening to as high as 109.7 per USD, yen suffered sell-off earlier this week to 110.6 per USD.
• However, we would like to suggest to our readers to maintain short positions in USD/JPY or long yen against the USD, as the safe haven currency continue to benefit from risk aversion, as well as a weaker USD.
• As of European session, the yen has strengthened to 110.3 per USD, riding on risk aversion and selloff in the equity market during the European Session. The Asian stock markets were broadly higher during the Asian hours but that changed as the European bourses open.

Trade idea:

• Maintain short positions in USD/JPY, as we expect the pair to decline to as low as 108.3 area. Buying expected around 109.1 area.