The pair declined to a low of 146.54 after Cohn’s resignation, but finds support at yesterday’s low of 146.56
And from the hourly chart, a double bottom appears to be formed following that move. The pair has since bounced back and is now trading at 146.79, but it’s still early days as the market continues to digest the repercussions of Cohn’s resignation.
On the data front, there isn’t much on the agenda this week for either currency that would alter the complexion of the pair — so it will be all about politics and risk sentiment.
If markets start to become more jittery on concerns over a trade war, then the yen will likely strengthen further. But for the moment, the risk can be defined by the support level from yesterday’s low, and just below that there is the 100-hour MA (red line) as well @ 146.41.
However, as long as price action remains contained between the 100-hour MA and 200-hour MA (blue line), it’s hard to see any strong conviction in an attempt to form a trend on either side just yet.