Yen remains in demand


USDJPY has ebbed back towards 110.50 from the upper 110.0s, and though remaining above yesterday’s 110.28 low is still down by 0.7% from week-ago levels following yesterday’s Yen-driven declines. Tokyo markets returned today from their 10-day hiatus. With US-China trade relations having deteriorated anew, expectations are for global stock markets, already sputtering in the face of historically lofty valuations and signs of slowing global growth, to remain volatile and at risk of outsized correction phases. This in turn should leave the Japanese currency underpinned by safe haven demand. USDJPY has support at 110.50 and at 110.25. Resistance comes in at 110.90 and the psychological pivot at 111.00. EURJPY has support at 123.50 and 123.25 with resistance at 124.00 and 124.40.

Stuart Cowell

Head Market Analyst

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