Shinzo Abe, the longest-serving Japanese Prime Minister in history, has suddenly resigned on August 28, citing health reasons. He will remain in his post until a successor is chosen. Mr Abe said he would still participate in the parliamentary vote and would not completely withdraw from politics.To get more news about WikiFX, you can visit wikifx official website.

　　On September 26, 2012, Shinzo Abe was elected as the president of the Liberal Democratic Party and won the general election later on December 26 in the year. After he became the president, the Japanese yen shrank from the peak of 77.13, while after he became the Prime Minister, the country‘s currency kept slipping till June, 2015 and bottomed at 125.86. The reason is the well-known 'Abenomics', which aimed to stimulate Japan's exports and prevent the worsening deflation by exerting a big depreciation in the value of the currency.

　　Japan‘s economy once recovered because of the Abenomics, and investors even regained confidence amid the successful Olympic bid. However, no one has ever expected that the outbreak of COVID-19 would completely destroyed the Abenomics and made Abe drained and resign from his post. After Abe announced his resignation, forex traders bought the yen aggressively as no one could anticipated who's his successor and whether the following policy would be in line with Abes.

　　On the other hand, Japan‘s stock markets went into a tailspin on the news of August 28. With the unwinding of carry trade and the rising risk aversion, the yen appeared to be strong and popular again. Under the Japan's uncertain political situation coupled with the continued weakness of the U.S. dollar, the yen has the opportunity to maintain its strength in the short term and challenge the two major resistance levels of 104.19 and 101.48.

EUR/USD Attention On A Break Below 1.18!

EUR/USD seems undecided after the US Non-Farm Payrolls data. It‘s traded at 1.1831 and I really believe that we'll have a clear direction in two, three days. Technically, the bullish bias remains intact as long as the rate stays within the up channels body and above 1.18 psychological level.To get more news about WikiFX, you can visit wikifx official website.

　　The Non-Farm Employment Change indicator was reported at 1371K, the Unemployment Rate dropped from 10.2% to 8.4% in August, while the Average Hourly Earnings rose by 0.4%, beating the 0.0% estimate.

　　The USD was somehow expected to appreciate versus its rivals after the good economic figures. It remains to see how the USDX will react during the day, a further growth followed by the breakout of 93.24 could announce a broader upside movement and EUR/USD correction.

USDX tries to continue its rebound but is facing a tough resistance at the minor downtrend line, Falling Wedges resistance. Still, the index shows some positive signs after closing above the upside 50% Fibonacci line.

　　Friday‘s false breakout with great separation above the minor downtrend line signals that the sellers are still in control. Only a jump and close above 93.24 Friday's high will really confirm a short term reversal.

　　You should be careful because another false breakout today followed by a drop below 92.55 static support will announce a deeper drop.
EUR/USD stays within the minor ascending channel, so it maintains its bullish outlook. The price has registered only two false breakdowns with great separation below 1.18 psychological level signaling strong bullish pressure around this downside obstacle.

　　Yet, the pair could still come back to pressure the 1.18 level, that‘s why I've said that the next days could be crucial. A valid breakdown from the up channel and below 1.18 could suggest selling, while another bullish momentum followed by a valid breakout above the second warning line (WL2) will bring a long opportunity.

　　A bearish reversal will be confirmed by a drop and close below 1.17 psychological level. Stochastic and RSI show a bearish divergence on the Daily chart but we need another lower low, drop below 1.1781 Fridays low to confirm a further drop in the short term.

　　The 250% Fibonacci line represents strong dynamic support. Today, the greenback could take the lead again as the German Industrial Production indicator has increased only by 1.2% in July, less versus 4.5% estimate.