The USD/JPY pair fell during the day on Wednesday, testing the 200-exponential moving average. If we can bounce from here, that saves a certain amount of bullish pressure in a market that has broken down a bit. The stock markets around the world have trying to recover late in the day, so that could be a good sign for this pair. Nonetheless, expect a lot of volatility in the short term as we will either fall towards the 110 level which is the 50% Fibonacci retracement level, or try to break above the 112 level, which could be a sign of strength.
Written by FX Empire