Yen pairs are moving big today as Japan's currency loses demand among investors. Bank of Japan's statement earlier this week suggested that the economy is still suffering from the pandemic and outlook is not getting much better. Money flow seems to have slowed in private spending. It's interesting that the yen is dropping off poor economic news while the currency is still considered a safe haven.
NZDJPY is up nearly 0.80% on the day making it one of the heaviest movers in the forex market after economic outlook was slashed for the first time in months for Japan. This pair broke above resistance at 79.432 and shot up from the momentum afterward. New support now lies around that area where the pair broke above as it makes a higher high on the 4H chart.
USDJPY breaks out of its wedge on the 4H chart and nears a triple top at 109.781. The pair has mostly been caught in consolidation up until Japan's national bank sent their currency sinking. Price may have trouble breaking this top since USD is not looking very strong either. So, this level could be viewed as another potential short position in the short term, but the pair has been in a steady uptrend for the most part.
GBPJPY on the 4H chart making a massive move, up 0.96% on the day, breaking resistance and touching higher highs. Big support now lies around 154.827, and if this recent 4H candle can close above that price, that support level will become more viable. We are expecting further volatility today, so big price swings could happen in either direction today with a bias to the upside.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]