The greenback ticked higher on Monday as sentiment turned to positive and the USDJPY pair was 0.50% higher during the London session, seen hovering around the 105 level.
There was a steep sell-off on Friday and stocks crashed, followed by the USDJPY pair. Trump announced new tariffs on Chinese imports, which prompted a risk-off trading. China will most likely retaliate in a similar manner.
Later in the day, a couple of FOMC governors will hold a speech, which might influence the greenback slightly. More data will come on Tuesday, including the consumer confidence gauge.
The resistance is located at the previous lows of 105.25 and if broken, further rise toward 105.60 could occur. However, as long as the USDJPY pair remains below these levels, the short-term outlook still seems bearish.
On the other hand, the support is at 105 and if not held, the greenback might deteriorate to the current cycle lows at 104.60. In all cases we strongly recommend to have rigorous money and risk management.
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