Another Safe-haven assets other than gold is yen. Lately, yen are quite superior and attract current market players. The warming of political conditions in some countries made the yen chosen by investors.
Quoting Bloomberg on Wednesday (8/5), at 10:30 a.m. WIB, the USD / JPY currency pair weakened 0.15% to 0.1600.
It is said that with heated geopolitical conditions, the yen is now flooded with buyers. Even the yen is preferred over the US dollar because of trade wars.
Just a note, in the two-day interest rate review that ended March 15, the Bank of Japan (BOJ) maintained monetary policy to remain stable despite trimming its assessment of exports and output amid rising global economic risks.
According to our source, President Donald Trump’s statement about the 25% increase in import tariffs on Chinese goods was enough to shake the market.
“Global economic growth is feared to be dragged down as well. So that the yen is considered to have a lower risk,” said Sakti.
We also projected USD / JPY pairing will move in the range of 109.98 to 110.69. From a technical standpoint, JPY-based cross forex is still diverse and has limited potential for weakness.
Volatility also decreases with the downward direction. Indicator VI leads down too. While the TSI indicator leads down. So it is recommended that the selling price is below 109.98 and buy above 110.70.