The Yen might gain further strength today. With stock prices at all-time highs and Gold on a rising path again we might see USD/JPY moving lower. A subdued USD also helps the safe-haven currency to strengthen further pushing the pair down towards the weekly pivot level Meanwhile, China’s yuan weakened allowing the Japanese yen to reverse earlier losses after reports that the United States will keep tariffs on Chinese goods through the U.S. election hurt risk sentiment.
Technical indicators point to an initial weakening with an excellent reward to risk ratio for now. If traders would come forward with a risk-averse move (trade deal, impeachment process, stock market decline due to bad US numbers) the pair could move quickly higher.