The U.S dollar has fallen sharply against the Japanese Yen, hitting 113.23, as the U.S dollar index succumbs to heavy selling pressure. Foreign exchange traders are becoming nervous ahead of today’s decision on the proposed tax reform plan, by the Trump administration. The USDJPY pair currently trades against the price-lows of the day, after breaching a number of key downside technical levels. Traders now await the latest news from the U.S Senate, which is expected to come shortly after the U.S opening bell.
The USDJPY pair remains strongly intraday bearish while trading below the 113.68 level, further downside towards the 112.90 and 112.30 levels is likely, if the Trump administrations tax plan falters.
Should the USDJPY pair regain the 113.68 level, further upside towards 113.89 and 114.24 seems possible if risk-on sentiment returns.
