USDJPY: Strong Yen amid fear that Cohn Trump adviser resigns

• Cohn, Trump’s top economic adviser plans to resign.
• USDJPY down 50 pips as Asia market starts.

The USDJPY has closed Tuesday virtually unchanged at 106.18. However as soon as the Asian started the USDJPY plunged more than 50 pips amid fears that Mr. Cohn, who heads the National Economic Council resigns.

Gary D. Cohn, President Trump’s top economic adviser plans to resign. The decision behind the move is mainly Trump’s decision to impse tariffs on steel and aluminium. Mr Cohn, is said to believe in free trade and he argued that the tariffs proposal could put the US economic growth in peril. Last August, the market tumbled just over the threat of him leaving office. The news triggered fear and a flight to safety with traders buying the yen.

Technically the USDJPY has sold off 50 pips since the New York close and no clear support is seen before the 105.50 psychological level and the cyclical low at 105.25. To the upside resistance is seen at 106.28 which is the 38.2% Fibonacci retracement level and furter up at 106.55 which is the 50% Fibonacci retracement level. 

USD/JPY 4-hour chart