The
USD/JPY is trading 300 pips above Friday’s low, up with 7% for the day with
current market price 110.15, due to the sharp recovery on US Treasury yields.
The macro agenda today has nothing to share in any of both sides and markets
ignored Trump’s latest comments on political concerns. The risk-on trading was
also supported by the silence from North Korea and the calming Irma, which
finally brought less damages than expected.
Technically speaking the
pair is losing bearish strength. On the four hour time frame the price is
moving well above its 100-day and 200-day SMA, while the 20-day SMA has turned
to the upside.
RSI and stochastic are located within extreme overbought conditions, but this is
not enough to show exhaustion.
However we must be careful if bulls could not conquer 110.25 (the immediate resistance) as then a downward
correction is upcoming, having in mind the sharp reversal from Fraday’s low.
Next Asian session is decisive proposing Japan’s producer price index release
with expectations for firm numbers suggesting surge the yen.
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