USDJPY – Down
USDJPY trading plan:
Sales in the stock markets will have a negative impact on the value of USDJPY. Investors sell shares and direct capital to safe assets (gold and Japanese yen). The Japanese yen is the number one funding currency in carry trade transactions. Investors close their carry trade transactions. Traders are worried about the slowdown in the global economy and close their deals in the stock markets. USDJPY closed below the psychological level of 110.00 last week. Now there is no good news that can change the negative trend.
Trading recommendation: Sell 110.10 and take profit 109.85.
You may check other analytical reviews on FreshForex website. Source: freshforex.com.