A1 Trading Company

June 23, 2022

More Upside For Yen After This

Frank Cabibi

The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down.

Weaker Yen Now, Stronger Yen Later

The Bank of Japan has been consistently keeping the yen in a weaker state for a long time now as interest rates still remain negative. Keeping yields low and easing is all part of the process to bring strength back to Japan's currency over time. A major focus that BOJ governor, Haruhiko Kuroda, is economic recovery, so spending must be ample.

The yen is also subject to volatile swings in either direction. And as long as rates keep causing depreciation, investors will likely be short. However, should investors see a light at the end of the tunnel (which could be happening now), JPY might be priced higher and cause a surge in price.

Against the USD, however, it may not find a good enough advantage than if it were to be paired against a country like Canada, Europe or UK. Here are some setups that could be bullish for yen should the rally continue.

Yen Setups

GBP/JPY

yen

Pound-yen can't seem to break above what is now a triple top on the 1D timeframe. The pair seems to be ranging from the upward trend line to this top which is creating a sort of wedge pattern. The yen's recent strength could take price back down to the trend line for a third test.

CAD/JPY

yen

CADJPY works its way down as oil demand weakened and BOJ hints at working towards tighter policy. Price is nearing support around 102.700s with additional support from a rising trend line on the 1D timeframe. A break under this trend line could take price lower towards the 98.400s.

EUR/JPY

yen

EJ looks similar to GJ except for the double top on this chart. Price came down today and is also nearing a rising trend line paired with support on the 1D timeframe. Price could come down to test those levels again. Now that there is a double top, price may struggle to break higher than the 144s.

A1 Edgefinder

AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Yields Hold Steady After GDP

GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]

Read More
USOil Breaks Through the Highs! (+$2646.85)

Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]

Read More
Surprising Risk-Off Signal From the EdgeFinder

Last Friday's report showed a significant change in global market sentiment from smart money. What COT signaled has turned ultra-risk-off for traders who have been hoping for Fed fears to subside. This news could spark up worries about higher interest rates for the long term. EdgeFinder Analysis GBPUSD is now a -12 on the EdgeFinder […]

Read More
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
Home
Edgefinder
VIP
Menu
homesmartphonelaptop-phonemenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram