USD/JPY scrambles back to unchanged after hitting the lowest since April
USD/JPY bounces back
There are two competing themes in markets right now: Lower inflation and North Korea. USD/JPY weakness is a result of both but they don't always ebb at the same pace. Right now, the market is reeling in worries about North Korea and the inflation trade is struggling to sustain itself.
USD/JPY fell as low as 108.68 but has bounced back to 109.18. At the lows, the pair broke the June low of 108.83.
Technically, you have to have to look far to see how meaningless that kind of momentary break is. On the same chart you can see July's break above the May high. It reversed and kicked off the latest 500 pips drop.
One clue that day was the negative close after the brief break. The inverse would be a positive close today.