When looking at the COT report on the Japanese Yen, there is an increase in the number of short positions taken by big money. Right now, only 17% of institutions are long JPY showing an overall short bias against the yen. Another thing that could be hurting the yen is the fact that the overall sentiment in USD rose last week alongside the stock market. COVID relief is happening more efficiently in the US over Japan and Europe as of now, and risk-on sentiment seems to be affecting JPY more negatively than the USD.
Jobs Numbers and Vaccine Rollout
Over the span of Biden's presidency, over 100 million vaccines were distributed in the US a month and a half ahead of schedule. Biden says he plans to double the number of vaccines distributed so far this year. This, along with the higher than expected jobs numbers in the US seems to be enough to take the yen down further.
On the daily chart here for USD/JPY, the pair has been in a very strong uptrend since the beginning of this year. This strong movement suggests that price has significant momentum to the upside after breaking yearly highs in early March. Now the pair is tested along some heavier resistance around 109.774 which will prove to be a key level in the pair's direction. If price doesn't break, it can find support around the low 108.000s, but if we see a break above, there could be a lot more room to the upside for this pair.
Most of the retail segment looks to be bullish on the yen even though demand is continually getting crushed by big money shorting the currency. Although retail is looking for a change in direction, it looks like that may not happen in the near future.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
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
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.