The USD/JPY currency pair failed to stop its 4th-consecutive session losing streak and dropped to fresh seven-week lows, around the 106.20 regions on Wednesday as the US dollar still depressed against its Japanese counterpart. The intensifying tension of the US-China war boosted the Japanese yen safe-haven demand, which eventually keeps the currency pair under pressure.
At this moment, the USD/JPY currency pair is currently trading at 106.31 and consolidates in the range between the 106.22 – 106.64. However, the currency pair failed to cheer the positive news about the re-opening of economies as traders awaited Chinese reaction to the US allegations.
Despite the fresh, positive report that most of the nations are set to re-starting their economies, investors are still cautious due to the intensifying fears of the second flow of a rise in the virus infections and worsening US-China relationships.
US President Donald Trump gave warning about imposing a fresh tariff on Chinese goods in toke revenge on the mishandling of the virus outbreak at the early stage. As in result, the Japanese yen continues to taking bids.
Technically, the USD/JPY pair has violated the symmetric triangle pattern, which was supporting the pair around 106.530. Violation of this candle may drive further selling in the pair until the next support area of 106.027, while resistance now continues to stay at 106.530. The MACD has started forming bearish histograms below 0, which is supporting selling bias in the USD/JPY pair. The violation of a symmetric triangle pattern can trigger further selling, so we have opened a selling trades in USD/JPY.
Entry Price: Sell at 106.27
Take Profit 105.77
Stop Loss 106.77
Profit & Loss Per Standard Lot = -$500/+$500
Profit & Loss Per Micro Lot = -$50/+$50