FxWirePro: Yen likely to strengthen towards 110 per dollar

As the Dollar weakened last night after Donald Trump’s speech, the yen has cleared a key resistance against the dollar and the USD/JPY pair decisively broke below 115.9 area. Several factors drove the yen over the past few days; uncertainty surrounding the government of the United Kingdom’s approach towards Brexit, Uncertainties surrounding China’s economy and currency, and Donald Trump’s policies towards big US corporates. After bashing auto companies for their overseas production over the past several weeks, last night Donald Trump took on the pharmacy companies for their exorbitant drug prices saying that they are getting away with murders and his government would change approach on how it procures the medicine.

Due to these uncertainties, we expect the Japanese yen, which is a top notch safe haven currency to outperform the rivals.

We at FxWirePro expect the yen to strengthen towards 110 against the dollar from its current price of 114 per dollar. The momentum can certainly push the pair to as low 109 per dollar.