The Dollar’s rebound was sharpest against the Yen after yesterday’s USD/JPY plunge to 101.18. Japanese officials were busy on the wires warning against any sharp Yen moves as the Yen rocketed and the Nikkei plunged. USD/JPY rebounded strongly off the 101.18 to 102.50 first up. The next drop in USD/JPY held at 101.50. USD/JPY then traded around 102.50 before the market’s risk appetite returned following US President’s Trump’s suggestion of tax cuts and other possible stimulus to temper the effects of COVID-19 spread in the US and global economy. USD/JPY soared to an overnight high at 105.919 before closing to settle at 105.45.
USD/JPY dipped in early Sydney to 105.10 where its currently trades. Expect further volatility in this currency pair. Immediate support can be found at 104.80 followed by 104.40. Immediate resistance lies at 105.50 and 105.90. Look for a choppy trading range today of 104.70-105.70. Be nimble, pick your levels well, and enjoy the ride.