The USD/JPY pair broke down significantly during the day on Friday, but did bounce later in the session. Ultimately, I believe that the market continues to go much lower, and the breakdown below the 108.50 level is indeed a very negative sign. Because of this, I suspect that this market should continue to drift lower, perhaps reaching towards the 105-level underneath. This is a very negative sign, and the idea of the Federal Reserve not being able to raise interest rates anytime soon should continue to weigh upon this market. Pay attention equities, this pair can be influenced by which direction they go as well.
Written by FX Empire