Japanese Yen Technical Analysis: USD/JPY Offers Dip-Buy Prospects

Japanese Yen Technical Analysis Talking Points:

  • USD/JPY has slipped from its 2018 highs
  • However, key support has held so far
  • EUR/JPY shows a similar daily chart profile but may be more vulnerable

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The Japanese Yen has staged a modest fightback against the US Dollar in the past week, but it may not get a lot further.

There doesn’t seem to be much obvious fundamental justification for the quite-sharp fall in USD/JPY seen since the pair made its highest point since November, 2017 back on October 3. There has perhaps been a rise in risk-aversion over the period in question, with trade frictions still all-too evident and the International Monetary Fund downgrading its global growth call. This is the sort of backdrop which usually favors perceived haven currencies and, while the Yen is certainly one of those, the US Dollar’s hugely greater yield has ensured that it, rather than the Japanese unit, which gets investors’ nods.

Technically, however, the Yen

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