Tonight, at 9:00 p.m. EST is to deliver his speech the President of the United States, Donald Trump. Markets expect that will be revealed certain particulars in connection with pompously announced in the election campaign changes in US fiscal policy. For Wall Street important is future shape of the corporate income and border tax but so far Trump only cooled emotions associated with it.
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Yen is gaining on this uncertainty – USD/JPY since the end of last year, remains in a downward trend, which de facto is a correction of increases observed on the pair in the autumn of 2016 years. Still the bears are holding on tight.
And in the next few hours we can count on continuation of the downward trend. As I mentioned in the introduction – USD/JPY has already abolished 50% of yesterday’s gains. Pair in last hours is hovering around this level, creating a recognizable formation of a triangle:
As you can see on the chart – USD/JPY slowly begins to strike the selected formation. It should however be borne in mind that currently observed move can be a false break. Definitely a better level to entry into short positions is around the upper limit of the triangle at 112.44. But if today’s session minimum will be broken, then it will signal a significant advantage of bears. First stronger support zone is located just below the level of 112.00, although personally i would prefer to place take profit around this year’s low. This level coincides with the expansion of 61.8 of last downward impulse observed in intraday interval.
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