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)
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.
As of 9:10 am EST, the 10-Year bond rate is up ~3.50% while the dollar index remains flat. Some big news coming up in the next 24 hours for the USD, EUR and AUD. US consumer confidence is expected to fall from the last reading. We received a strange signal from the EdgeFinder that could […]
This week, we have seen a lot of market swings in sentiment along with uncertainty around economic stability. Because of this mixed mindset, investors have been shifting their interest towards gold. This article will cover why gold could continue to move higher. Medium to high impact news is coming up for all currencies such as […]
There are some major news ahead for the EUR, CAD, AUD and USD pairs this week. Wednesday will be another Fed rate decision forecasted to be another 25 bp. Here are some events set to come out tomorrow: EdgeFinder Analysis UC is still the EdgeFinder's favorite buy score along with USDZAR at +7. Retail is […]
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