USD/JPY Outlook (03 January 2020)

Overall, USD/JPY is trending downwards. Recently, USD/JPY trended lower, breaking the support level of 108.550 after news of Iran’s top commander General Qassim Soleimani being killed in a U.S. drone strike in Baghdad was released. Iranian officials responded by saying that the General’s death could lead to a war between Iran and the U.S.
As a result, market participants flee to safe haven currencies such as the Japanese yen.
USD/JPY’s next support level is at 106.800 and the next resistance level is at 108.550.
Look for short-term selling opportunities of USD/JPY.