Significant downside risks remain for USD/JPY, which has recovered slightly in the last week.
It's worth betting this is the eye of a storm that will rage again if the United States and China fail to agree on a trade deal .
USD/JPY remains below 2019 highs after dropping sharply at the end of May, and despite halving their bets traders are still short yen IMM/FX.
Those bets depend on positive sentiment and strong risk appetite.
USD/JPY is near a bearish technical break that should figure prominently in Japan.
The pair is close to monthly Ichimoku cloud base at 108.35.
USD/JPY has been above the cloud since 2013.
The last break under was in 2008.
The subsequent drop drew much fuel from the crisis, but a break today is still likely to see significant follow-through.
At the very least Japanese players, main buyers lately, will drop bids.
Perhaps closer 200- and 100-MMAs 104.57/102.95.
USD/JPY Click here