The US dollar has broken higher after initially dropping against the Japanese yen during the day on Tuesday, breaking above the top of the inverted hammer that formed for the Monday session.
For four consecutive trading sessions, the USD/JPY pair has stabilized around and below the 108.00 psychological support level, with losses reaching support at 107.80.
The US dollar has rallied a bit during the Monday session against the Japanese yen but gave back the gains to form a rather lackluster looking candle stick.
With the beginning of this week’s trading, the USD / JPY pair rebounded to the 108.98 resistance level, but with the US Federal Reserve's signs of nearing the US interest rate cut, the pair fell to the 107.85 level
The US dollar initially tried to rally during the trading session on Friday but then collapsed against the Japanese yen as the greenback got sold off against just about everything.
The US dollar initially broke down during the trading session on Thursday but found enough support just below the ¥180 level to turn things around and form a massive hammer.
Strong signs from the US central bank of a near US interest rate cut contributed to stronger losses for the US dollar against other major currencies.
The US dollar fell rather hard against the Japanese yen during the trading session on Wednesday after the Federal Reserve Chairman Jerome Powell released his opening remarks for the Humphrey Hawkins congressional testimony.
For the fourth day in a row, the USD / JPY pair moved up towards the 108.98 resistance level the time of writing, the highest level in one month.
Looking at the US dollar, you can see that we were rather bullish to kick off the trading session on Tuesday but haven’t ran into a significant amount of resistance above the ¥108 level.
The US dollar initially dropped a bit during the beginning of the week, showing signs of weakness.
The Japanese yen is still stronger and the USD bullish correction attempts didn’t pass the 108.63 resistance, and the USD/JPY settled again around 108.30 at the time of writing.
The US dollar rallied significantly during the trading session on Friday after the jobs number came out much stronger than anticipated.
The US dollar has gone back and forth during the trading session on Thursday in a very tight range, but that shouldn’t be much of a surprise as it has been Independence Day in the United States.
The JPY is still the main beneficiary of continued global trade and political tensions as one of the most important safe haven to hedge investors from the consequences of these tensions.