6/7/2021

The yen is rising today in contrast to COT numbers showing institutional selling. Japanese 10-year bond trading has sunk to new lows for the last 10 years while CPI continues to slip. BOJ is easing off of their usual bond buying to influence more free trade in the bond market, and investors fear that a more hands-off approach is almost the only option for Japan's economy. So, if negative sentiment in Japan's economy does not seem to be the reason for the yen's rise, then maybe it could be from external factors. The yen is heavily dependent on what's happening with the USD, and the fear of rising federal rates could, in turn, make the yen a safer bet than the USD. That's pretty much what I can gather from current news, but I think this might be what's going on. And if the yen is rising on USD inflation fears, there might be some short term bullishness on the yen.

USD/JPY

UJ breaks under support on the 4H chart and is heading for the bottom trend line of this channel. There is also some more support on the chart's 200 SMA for this timeframe. Several red candles suggest a continuation of bearish moves, and a price break under the channel would probably mean further volatility to the downside.

CAD/JPY

CJ on the 4H chart is down 0.26% on the day marking the most volatile pair of today. Price sees pretty strong support on its rising trend line since price has obeyed that level twice before. Resistance hovers above price around 90.612. A break in that level could take price up to additional resistance around 91.190.

NZD/JPY

This pair is much less volatile than previous pairs but has potential setups on the 4H timeframe. Lots of support from the 200 SMA has kept this price afloat for some time now with resistance at 79.200s. A continuation of this upward channel seems likely.