USDJPY TESTING PIVOTAL 108.98 LEVEL
The U.S dollar has lost ground against the Japanese yen in early Wednesday trading, falling back towards the pivotal 108.98 technical level. After seeing a strong relief rally towards the 109.71 level following a recovery in global equity prices, USDJPY price-action is now testing demand around the 109.00 zone. Going forward, risk-sentiment remains the key driver of the pair, as the Japanese yen currency is considered a major safe-haven asset in times of extreme market volatility.
The USDJPY pair remains bullish while price-action trades above the key 108.98 pivot, further upside towards the 109.44 level is still possible.
If the USDJPY pair falls below the 108.98 level, we may see a deeper correction back towards the 108.70 and 108.27 support levels.