FxWirePro: USD/JPY loses momentum but outlook is bullish
USD/JPY declined slightly on Wednesday as U.S. President Trump's abrupt firing of FBI chief James Comey increased demand for safe-haven yen, though gains were capped by expectations of further U.S. interest rate increase…
USD/JPY declined slightly on Wednesday as U.S. President Trump's abrupt firing of FBI chief James Comey increased demand for safe-haven yen, though gains were capped by expectations of further U.S. interest rate increases.
Rekindled fears that North Korea could be gearing up for another weapons test also increased the demand for yen, which had sunk to an eight-week low against the dollar the previous day as investors' appetite for riskier currencies increased on the back of a weekend French election result that eased euro break-up fears.
However, further downside for this pair is expected to be limited as strong support at 1.2388 is likely to hold the bears from falling further below.
To the upside, immediate resistance can be seen at 114.12, a break above this level would take the pair towards next resistance level at 114.63.
To the downside, strong support can be seen at 113.24, a break below this level will open the gates towards next level at 112.91.
