USDJPY WEAKNESS TO ACCELERATE BELOW 109.50
The U.S dollar has moved to lowest trading level against the Japanese yen since September 2017, hitting 109.40, following dollar negative comments from the U.S Treasury Secretary. Speaking at the World Economic Forum in Davos, Switzerland, U.S Treasury Secretary Steve Mnuchin said that a weaker U.S dollar is good for the American economy, immediately causing the USDJPY pair to break lower. Traders now look to Manufacturing data from the U.S economy, and the fastening depreciation in the value of the U.S dollar.
The USDJPY pair is likely to see further selling while trading below the 109.50 level, further losses towards 108.98 and 108.60 now appear likely.
Should the USDJPY pair start to trade back above the 109.50 level, a correction towards 109.80 and 110.18 remains possible.