USD/JPY edges towards key support levels
The battle in USD/JPY is the Mayweather-McGregor battle in financial markets. The pair on Friday briefly touched below the June low before rebounding when Bannon was fired. That bounce is fading with the pair down 45 pips today and the US dollar under broad pressure.
If today's low breaks, it's a straight line down to the April low of 108.13. That's the 'wall' that can't be broken for the bulls. If it gives way, the entire election rally from 100 is at risk.
The confirmation will be in the bond and gold markets. They are nearing similarly critical levels and all three will need to go in tandem to spark a true break.
