Any technical signals about USD/JPY’s possible direction on Wednesday were shuttered by a 1.17% plunge during the morning hours. This massive decline was caused primarily by global geopolitical tensions which shifted risk-averse investors to the Yen as a save-haven currency.
Bulls managed to overtake the market for a few hours, but their gains were once again erased later in the evening. By Thursday morning, USD/JPY was trading at the 109.50 mark.
Technical indicators converging with the current price movement suggests that a bullish reversal might be under way. The daily high should be the combined resistance of the 200– and 55-hour SMAs and the weekly PP at 110.40. In case bears prevail, the Greenback should not fall below the 109.00 level.
