GBP/USD: Pound Steady vs. Dollar Ahead of Super Wednesday
  • USD/JPY slipped lower for a second consecutive day yesterday
    JPY was well supported from safe haven flows
  • Solid US Dollar demand helped keep losses in check as equity markets stabilised

USD/JPY trended southwards for the second day on Wednesday hitting a fresh one-week low, around 105.80-75.

The safe haven JPY received support following a deep sell off in US equity markets;.a key factor exerting pressure.

Technical selling could also be playing a role after yesterday’s decline pulled the pair through a multi-day-old trading range support. Meanwhile several factors provided support.

US equity futures are starting to calm, which, when added to rising US Dollar demand helped limit losses.

Technically speaking,  USD/JPY has been oscillating between two converging trend-lines for the past few weeks forming a symmetrical triangle, which points to a lack of direction moving forwards whilst suggesting indecision over the next leg of a directional move.

The economic calendar is light on Wednesday. It could be prudent to wait for some strong follow-through selling before positioning for a deeper sell off.