Yen pairs falter on risk appetite

11 July, 2017

Yen pairs falter on risk appetite

The Japanese Yen has long been the favourite for currency hedging but has suffered in recent weeks as the market throws of negative sentiment about the health of the global economy. So far strong movements in the USDJPY and EURJPY have attracted strong interest from the trading community as they look to profit of the volatility of traders exiting this safe haven. Positive noise out of the European economy and the US economy has led to a renaissance of selling in safe haven pairs, and the Bank of Japan is not getting in the way as it looks to step aside and let the Yen devalue further in an effort to bolster inflation.

For the EURJPY the bulls are certainly in the driving seat and there is potential for further gains here as they look to climb of key levels and extend further. I'm also watching for a channel to form here as the Yen pairs tend to form controlled channels and love technical trading. Support levels can be found at 124.062 and 127.361. Key resistance which traders will be looking to aim for can be found at 131.486 and is likely to be tested if the bullish trend continues to run in the short term.

For the USDJPY it has finally broken out of it of the flag pattern that had formed over the last few months. As a result I would expect any pull back to trend the broken trend line as dynamic support in this instance, with the potential if it fall lower to test 112.552 and 111.579 respectively. Targets for the bullish trend to continue can be found at resistance levels at 115.396 and 116.998. Expectations are forming that this run could continue, but resistance at 118.553 could be a hard land in the side for bullish traders in the long run.

AUD traders will be watching the economic data due out shortly, as business confidence and home loan data will set the tone for a market which is very much aware of the volatility of the Australian economy. A strong reading would be a boost for the AUDUSD which has recently failed to extend higher. However the drop lower has hit strong support at 0.7581 and this has so far held back any further bearish advances. If we do see positive data we can be fairly positive in that we could see a rise to 0.7659 at least, with potential to extend even further up to 0.7719. However, this may take some time due to risk appetite at present. In the even there is a market drop I would anticipate 0.7581 and then 0.7535 as the key levels that will be targeted.


Source link  
US tax bill send equities soaring

The Tax bill has been talked about for some time, and today was the day for it. Obviously, it cleared the US house easily enough and is now...

Equity markets looking unhinged

It should be all good news for global equity markets at present as the global recovery continues to tick along nicely. So far profits are up and the market...

Steep equity correction is underway

2017 has seen many hedge fund and portfolio managers send warning signals that an equity market correction is overdue. Overstretched valuations...


RBNZ set for change on new mandate

The New Zealand government continues to be in the eye of traders as the current changes to the Reserve Bank of New Zealand look to be...

Brent touches a new 2-year high

Oil prices continued to march higher on both sides of the Atlantic early Monday. In the early trading hours, Brent reached a high of $62.44...

US feels Trump effect wearing off

Trumps tax plan seems to be going well in Congress with Republicans continuing to offer support, even though it will produce a deficit in the short...


Markets searching for new catalysts

U.S. equity investors have decided to pull out some profits on Monday, after Wall Street’s major indices posted new intraday records at the opening...

Oil primed to jump

Oil markets have been volatile in 2017 and not the one way traffic we saw in 2016. The market has been responding to a variety of factors, the main one being the glut...

Record highs are no longer justified

Since Election Day on November 8, the Stock Market is up more than 25%, unemployment is at a 17 year low & companies are coming back to U.S...

  


Share: