As we all know, JPY is the most traded currency in the financial market comprising of 80% of the total FOREX market. Also, JPY has an inverse correlation with the Nikkei 225 due to various fundamentals of the Japanese economy. JPY is also known as the safe-haven for the traders. Thus, during tough economic times the traders opt to go long on JPY. With rising trade tension between USA and China, we have seen some stability in JPY and the USD has not been able to breakout beyond the 107.40 resistance point. Having said that, the traders are choosing other currencies like EUR, GBP, CAD and AUD over JPY. Yesterday, President Xi has also given some relief to the traders by implying that there is not much to worry about the rising tensions between the USA and China. Thus, JPY has not been able to fare well against its American counterpart.
Looking at the technical of 5H chart (courtesy: Investing.com), we infer that it is a good time to go long on the pair and we can see some weakness in the JPY. And, there is a formation of Wave 3, which will help the pair to break out 107.50.