Can it hold the break this time around?
It has been the case the entire week for the pair as sellers continue to attempt a break of the key support level but fail despite market sentiment still iffy. E-minis are back to trade 0.9% lower currently and that has seen USD/JPY test the 112.00 handle.
In doing so, price is once again aiming for a break below the upwards trendline support as shown above. So far this week, we’ve moved below that level but price has been unable to secure a daily close under it and that is what is helping to keep buyers in the game still.
The risk events for the pair in today’s trading will be twofold. The first will come from the US advance Q3 GDP reading and that will matter for dollar sentiment on the day. The second will be the performance of the US cash equity market and that matters for yen sentiment.
Right now, E-minis are telling the narrative that US stocks are set to move lower after yesterday’s light rebound but we’ll have to wait and see what North American traders say when they come in later. Stranger things have happened in markets but we’re seeing yen pairs all start approaching a key tipping point with USD/JPY threatening a break here and AUD/JPY on the verge of falling below the September low. Will today finally be the day the dam breaks?