USD/JPY not dented so much by Trump and here is why

The Nikkei 225 felt the fallout from the Trump comments at the start of the Asian session today. The index fell back sharply towards the 38k handle as the Chinese markets came under pressure and that all pushed the Yen higher. So, the USD/JPY fell back from a high at 154.49. The dollar had closed in the US at 154.23, but it was edging higher before Trump spoke. The fall that followed saw it drop to 153.55. That low matched the low seen yesterday. However, the USD/JPY has now lifted off that low and just now reclaimed the 154 handle. So, if you are looking for reasons why the USD/JPY did not slide further, then it would seem obvious- Japan was not mentioned in that list of immediate sanctions by Trump and that could be significant. We shall see. Either way the markets seem to have taken that on board for now. So, all the time that 153.55 caps the downside, there is the prospect of a very short term double bottom being set in place down there. It is way to early to conclude on that though. The USD/JPY is currently trading at 154.07