Market News & Analysis
Risk holding to the Yen for now.
Looking at the three main risk / JPY pairs we can see increasing signs of short term low’s developing to the JPY.
The JPY has seen solid demand off the back of the current trade worries between the U.S. and China. Normally in times of worry and crisis, the Yen is looked to a safe-haven. Traders and investors will move our of risk currencies like the AUD and EUR and move into the JPY. For the last week, the trade front while still, an issue hasn’t been a flash point like we’ve seen. Currently, we’re starting to see some signs of support building to the JPY.
Traders still need to look at the overall trend which remains down, but the short term could offer short term opportunities or time to position for potential new continuations setups. let’s take a quick look at some of the majors to the JPY daily chart below.
AUDJPY – has set up a new higher low off previous support, this low looks to have some strength. But we would want to see how price reacts after the range is beaten, atm buyers and sellers are treading water. Buys could be looked at if the support is tested again and held. Breakout buys out of the range could be risky at this point. A new solid higher low could suggest a deeper correction from buyers is developing. A break of support we’d be looking for evidence to sell ( new lower high after the break).
EURJPY – yes we have a support point but current price action is far from convincing that buyers hold any power. Buyers would need to set up an engulfing candle or a solid higher low to start suggesting a buy could be looked at. On the sell side, a strong break lower with a new failed rally could be good signs of a new continuation lower.
GBPJPY – very dangerous to look at a buy right now without some sort of momentum change. The GBPJPY has been getting belted on two fronts, trade worries and Brexit. For we’d only be looking for we timed continuation sells. A new failed rally to fade would be a nice starting point or a break of the current weak looking low followed up by a new failed rally.
Good trading from EightCap
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