USD/JPY has broken higher by nearly 4% from the April 17 low at 108.13. If you look at the chart below, you can see that the price was already extended lower and a rebound was due. Since then, we’ve had a run higher in specific risky assets like equity and an unwind of bearish EUR positions, which has lifted EUR/JPY higher by ~6.3% in the sametimeframe that USD/JPY has moved higher by ~4%. Thursday will provide the April Bank of Japan ...
USD/JPY Weekly USD/JPY has turned up within its channel but preference remains for sideways trade. There are a few reasons for wanting to fade strength and buy weakness (range trade), chief among them is the fact that the 13 week average is flat and price levels are well defined. Generally speaking, 115.50-116.00 has been important on both sides of the market since December 2014. As long as price is below the level, the zone is resistance. ...
JPY strength continues into the close of February and in anticipation of President Trump’s speech that will be analyzed for details on the timing of stimulus that could revive the reflation trade. There is a strong positive correlation to yields of US Treasuries and USD/JPY and a clear message from President Trump that inflationary inducing policies are on their way would likely help boost USD/JPY. Lack of details could keep the market on its current course of giving back-post election gains, most ...
USD/JPY W1 "Last week’s reversal materialized from the neckline of that pattern. This week’s follow through has resulted in a test of the 55 week average. The 2015 high was right at the 1990-1998 line (log scale), so a broader topping formation is still possible." The price is ranging around Central Yearly Pivot at 120.63 waiting for the following direction and targets: R1 Pivot level at 125.41 for the bullish scenario, orS1 Pivot level at 115.41 for the bearish ...
"When the Yen strengthens as it has at the beginning of 2016, there is often stress in the global economy. So far, the JPY has strengthened by ~2.5% to start the year vs. the US Dollar while most currencies, most notably the commodity currencies have weakened aggressively. USD-JPY is in a precarious position much like the global economy is in a precarious position. Many expect a rally in risk, even if it is just a short-lived rally because we have been trained like Pavlov’s dog to expect a bounce ...
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