Good afternoon, dear traders! I present to you an overview of the USD/JPY pair.
After Trump's "historic" "all is well" response on Iran, the demand on the USD/JPY pair gained sharply. However, before turning on to the charts, I want to elaborate what the American President said the day after Iran's "slap in the face".
Trump addressed the people.
In the morning after Iranian missiles fell on the bases where American troops are stationed in Iraq, the President said that none of the Americans were injured.
In an address to the nation, President Trump spoke about the conflict with Iran and announced new economic sanctions against Tehran.
"As long as I am President of the United States, Iran will never be allowed to have nuclear weapons. The American people should be extremely grateful and happy. None of the Americans were injured in yesterday's attack by the Iranian regime. We didn't suffer any losses. All our soldiers are safe, and only minimal damage has been done to our military bases. The United States will immediately impose additional economic sanctions against the Iranian regime. These powerful sanctions will remain in place until Iran changes its behavior," Trump announced. At the same time, he called on NATO allies to participate more actively in the Middle East.
With regards to this, analysts have warned that even if both sides ease further military engagement in the near future, the conflict could very well manifest itself in other ways in the coming weeks and months. Iran has many proxy groups in the Middle East that could create new problems for American troops or American allies like Israel and Saudi Arabia, moreso, American experts remain wary of a possible Iranian cyber strike on domestic targets.
Some Democrats called on Mr. Trump to abandon further military escalation.
In the past, Trump has made it clear that he would be willing to negotiate without preconditions, however, diplomacy now seems even more unlikely than before, as Tehran promises to abandon restrictions in the Obama agreement and begin developing its nuclear capabilities.
Gold, oil, SnP500 and USD/JPY reacted the most strongly.
Today, I want to focus on the latter and of them:
In this case, sellers are trapped at the level of 109.7. Imagine yourself as a seller for the last couple of months - you just have nowhere else to put your feet on! This is a definite trap that can be closed at any time! Also, I remind you that today, non farm payroll will be released at 14:30 London time.
Thus, for sellers, we recommend either closing or closing positions (lock). For those who are in purchases, take profits on the breakdown of 109.7-109.8, or trawl the breakdown. We do not recommend opening sales before this level.
Good luck in trading and control the risks!
