There is a near endless cycle of global economic news worth focusing on. Recent noteworthy stories include the complete abandonment of UK PM Truss’ ill-timed signature tax cuts, as well as the US Dollar Index briefly falling during better-than-expected US corporate earnings. Just this morning, both UK and Canadian CPI data came in hotter than what was forecast. However, one currency continues to stand out as particularly worth watching, despite few policy updates or other fundamental catalysts this week: the Japanese Yen. With Japan’s economy in a comfortable state of low unemployment and higher consumer spending, yet little dangerous overheating, the Bank of Japan continues its ultraloose monetary policy, voluntarily sacrificing JPY’s forex value for economic prosperity. With the Yen thus continuing its fall to multidecade lows, this bearish momentum shows no signs of stopping, potentially making JPY the best currency to short.
Best Pairs to Buy
According to the EdgeFinder, A1 Trading’s market scanner that assists traders by consolidating and presenting key market analysis, the following three pairs are rated favorably for those shorting JPY. They are listed below with their respective ratings, signals/biases, and corresponding charts.
Regarding technical analysis, each pair has a clear, strong uptrend. As conveyed in the EdgeFinder charts, despite Japan's fantastic economic performance, institutional bearishness (see 'COT data' in the Sentiment category) on the Yen, trend reading, and interest rate divergence are recurring bullish themes across pairs.
1) USD/JPY (Receives a 4, or ‘Buy’ Signal)
2) CHF/JPY (Receives a 4, or ‘Buy’ Signal)
3) NZD/JPY (Receives a 3, or ‘Buy’ Signal)
Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.
While today is relatively uneventful in terms of major economic news around the world, this will not be the case for long. There is a chance that the forex market could witness a Kiwi Dollar spike tomorrow due to the Reserve Bank of New Zealand (RBNZ) announcing their latest interest rate hike at 8 pm […]
As many of you already know, the EdgeFinder, A1 Trading’s market scanner software, can be incredibly helpful for discerning which securities are especially worth watching for potential trade setups. Whether you are planning on buying or selling a currency pair, commodity, bond, or more, EdgeFinder analysis is so robust that its ratings and biases can […]
This morning at 2 am Eastern Time, the Office for National Statistics reported the latest monthly round of Consumer Price Index (CPI) and Core CPI increases within the United Kingdom’s economy. Annual CPI, which had been forecasted to hit 10.7%, instead jumped by an astonishing 11.1%, making for another multidecade high; annual Core CPI also […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here