This unfavorable development has added another layer of uncertainty ahead of crucial negotiations between the two countries. With fears elevated over trade talks crumbling as Trump prepares to raise tariffs on Chinese goods, investors have scattered from riskier assets to safe-haven investments like the Japanese Yen.
The Yen has warmly welcomed the risk-off mood today, especially when considering how it has appreciated against all major currencies including the Dollar. Focusing on the technical picture, the USDJPY is under pressure on the daily charts with prices trading below 110.00 as of writing. A daily close below this level is seen opening a path toward 109.00.
EURJPY eyes 122.50 support level
Risk aversion has instilled Yen bulls with enough inspiration to drag the EURJPY towards flash crash levels witnessed in January 2019.
The currency pair fulfills the prerequisites of a bearish trend on the daily charts as there have been consistently lower lows and lower highs. A solid breakdown and daily close below 122.50 is likely to encourage a drop towards 121.00.
GBPJPY tumbles below 143.00
The combination of Pound weakness and Yen strength has excited GBPJPY bears this week with prices dipping below 143.00 as of writing. Prices are bearish with further downside on the cards amid the risk-off sentiment. The first key level of interest will be around the 141.50 point.
AUDJPY edges towards 76.00
We remain bearish on the AUDJPY below the 77.50 level. Should prices sink below the 76.00 level, this may open the gates towards 75.00 and lower.
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