USD/JPY Technical Analysis: June 7, 2017
The U.S. dollar was behind of the Japanese yen during the Tuesday session. The USD/JPY pair broke lower than the 110 region which makes weaker to further decline. On the other hand, the 110 mark is being resistive. A move lower towards the 108/ region is the next target because of 61.8% Fibonacci retracement level and a whole number that offers significant level.
In the current condition of the market, it is better to sell this pair, especially if the 110 level and below is sustained. Also, market should be careful of volatility with the presence of bearish pressure as the U.S. dollar depreciates
More traders could play on the safe side with the ongoing tension between Saudi Arabia and Qatar. There is a somehow a pressure underneath and entails a “risk off” in trading. A move higher than the 110.50 level would counter the negativity in the market that would push the trend to go higher.
Overall, traders should expect high volatility. It may be difficult to bring the price higher with the strong resistance level while the 108 region is a significant level that traders cannot ignore following a rollover during the Tuesday session. If the price breaks lower than 108 region, then this would propel the price downhill in the next trading sessions.