Uncertainty and further developments regarding trade tensions set the trends in the markets yesterday. Especially contradicting messages coming out of the White House about possible new investment rules in the US, blurred the picture. The main issue seems to be concentrating on whether the investment restrictions in the US will apply only for China or worldwide. Both cases were supported yesterday from White house officials, providing confusion to the markets, while media mentions the 6th of July as a possible date for president Trump to announce the next moves of the US. The USD weakened against JPY during today’s Asian morning and should there be further escalation we could see it weakening even further.
USD/JPY traded in a sideways movement yesterday. We see the case for the pair to continue to trade in a sideways manner today however some bearish tendencies may occur should there be further negative headlines about trade tensions. Should the pair be under selling interest we could see it breaking the 109.25 support line and aim for the 108.70 support level. Should it find buying orders along its path we could see it breaking on the upside the 109.75 resistance line and aim for the 110.25 resistance level.