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For many of the yen pairs last week was one of volatile price action, with sentiment swinging from risk on, to risk off and back again as each day brought a fresh round of positive or negative news, and all of this was amply reflected on the daily chart of the yen index, which traded in a tight range over the five days.

The previous week had seen the yen index rise sharply, breaking away from the 8170 region and accelerating over a two day period with the associated widespread up candles, before last week’s price action then consolidated with the index building between resistance at 8450 and support in the 8320 area. This price action was mirrored across the yen complex and in particular on the AUD/JPY which tested the 79.80 area, and in today’s early trading is now moving back to test resistance in the 81 region as overnight indices on Globex recover some bullish momentum with the NQ e-mini up 16 points at the time of writing.

For a continued move higher for the Aussie yen and others in yen complex longer term, we need to see the resistance on the index in the 8450 region hold firm coupled with a reversal lower to test support in the 8220 area. But as always much will depend on developments in the trade wars and tariffs, and of course Donald’s insightful tweets.