- The yen is making offers while gold is reaching multi-year highs.
- Increase in the safe haven value as American-Chinese tensions intensify.
- The USD / JPY daily chart shows the indecision in the market.
The Japanese anti-risk yen took over an offer alongside gold losses, a classic asset.
The two assets are gaining altitude, possibly due to renewed friction between the United States and China over the coronavirus epidemic. The top Trump administration official said over the weekend that Beijing had sent airline passengers to spread the infection worldwide.
The USD / JPY pair is now trading unchanged at 107.08, after being rejected at 107.28 a few minutes before press time.
From a technical analysis point of view, the USD / JPY pair lacks a clear directional bias. In addition, the long upper and lower wicks attached to the three previous daily candles indicate indecision in the market.
A convincing move above Friday’s 107.43 high would imply that the period of indecision ends with the bullish break. This will likely give a new test of 107.77 – the highest success of May 11.
Alternatively, a move below the May 13 low of 106.74 would confirm a bearish reversal and expose the psychological support of 106.00.