The Japanese Yen is increasingly taking cues from the sliding Asian currencies due to anticipated changes in terms of trade, So, the traditional Intermarket correlations have broken down the Yen is not responding to risk aversion as USDJPY recovery continues into a 6 month high territory as the pair confirms a technical upside break on multiple parameters. USD bids on trade war comfortably thumps any residual risk aversion lead JPY demand.
The USDJPY has comfortably cleared past a 7 month resistance line it has been orbiting around for the past week despite signs of another escalation in trade war as USD demand keeps the pair well bid on dips.
The pair rose to the highest level since January hitting the 112.35 showing a strong bullish breakout despite the tensions.
it has bounced from 110.75 all the way towards 112.26 as of writing, the short term outlook for the pair remain bullish as it managed to hold above it's pivot 111.40 the technical indicators entered positive territory, maintaining their bullish slopes at their highest in over a week.
We're expecting a consolidation between 112.35-112 area however a break above the 112.35 zone will likely yield a rally all the way to the 112.65 and would confirm the bullish trend.