Tag Archives: JPY

Yuppy Is Going Down

Nenad Kerkez

The EUR/JPY is making bearish swings on daily chart and our mini chart suggests a continuation of bearish trend. Sell on rallies could be possible close to POC 113.35-50 (H3,DPP, trend line). Additionally POC zone is 78.6 fib of the last bearish swing on H1 chart. The target is 112.75 and if the price makes a momentum break below 112.75, it will target 112.25. Only below 112.25, 111.40 is possible but it will hardly happen today as we are in a holiday trading mode. more…

Elliott Wave Analysis On 10 Year US Notes And USDJPY

Gregor Horvat

10 year US notes shows a five wave of decline from July high which is a clear bearish pattern that should send prices even lower after any corrective set-back. The latest price structure, from the last 48 hours suggests, that market has room for a deeper pullback to make a nice A-B-C bounce; a zigzag pattern that can stop this week somewhere around 133’00 area. We will expect a strong drop from that region, as long as July high remains in place. more…

GBP/JPY The Dragon Is Flying High

Nenad Kerkez

The GBP/JPY aka “the Dragon” has a strong correlation with equities. Last night Japan, HK and Australian markets went up due to commodities prices up, abenomics in Japan, and follow through risk-on due to US Equities performing strongly overnight. Nikkei was probably the best performer as it has been up 1200pts in 3 days. more…

Markets React To Shock Brexit Outcome

Fawad Razaqzada

As it became clear that the outcome of the UK referendum was going to be an exit from the EU, the pound literally got pounded as it dropped from an overnight high of 1.50 to sub 1.33 when the news was confirmed, while the FTSE tanked nearly 10% at the open. Most people were undoubtedly wrong-footed given how confident some betting companies were in pricing in the odds for remain. Naturally, the markets have rebounded sharply off their lows as you would expect. Profit-taking and dip buyers have, for now, provided some relief. Traders who have not yet expressed their views are starting to come back into the markets as key levels are re-tested, so volumes and volatility should remain high for a while yet. Given what has happened, most speculators are likely to step in and fade the rallies rather than buy the dips. more…

EUR/JPY Consolidating Within Bullish Pennant

Nenad Kerkez

The EUR/JPY has been consolidating in the bullish pennant for last couple of days. This consolidation is showing a battle between bulls and bears for the next breakout. For trading purpose we have 2 possible scenarios. Twofold scenario is possible due to general downtrend and bullish pennant at L3 support. As the price is generally bearish, we might see a drop from POC zone 117.97-118.20 (H3, DPP, 61.8,EMA89,the top of the pennant) towards 117.50, 117.00 and 116.45. However if we see an upward breakout above 118.25 the price could reach 118.64 and 119.05-20 zone. Watch the correlation table and equities. SP500 will move in correlation with EUR/JPY during NY session. more…

AUD/JPY T-89 Pattern Suggesting A Possible Bounce

Nenad Kerkez

The AUD/JPY pair spiked after a V shaped reversal at the bottom spiking up to 80.30, slightly below H3 camarilla pivot. Now moment price action is showing a completed T-89 pattern right off L4 support where we can see a confluence zone (L4, 38.2, T-89). Since T-89 has been completed we might see a bounce off 79.70 too towards 80.40 and 80.80. Only if the price breaks 80.80 it will make an ascending scallop towards 81.30. Ideally the price should stay above L4 in order for the price to remain bullish. more…

AUDJPY Low Volatility Zone Keeping The Pair Below Resistance

Nenad Kerkez

Equities is ranging, and most indices are on strong support, if they drop again then JPY pairs could drop a lot (more JPY strength). SP500 below 2040 is very bearish and DAX below 9800 is very bearish too. Additionally – RBA is signalling more rate cuts. Once this happens money will go back into JPY and we will see a stronger JPY again. Also it is very important to keep an eye for FOMC meeting today. more…

USDJPY Two Crows Keep The Pair In Range

Nenad Kerkez

Today Federal Reserve Chair Jane Yellen and other FOMC members could give us cues about potential rate hike in June. Market doesn’t expect changes in Federal Funds Rate ( 0.50 % vs 0.50 %) decision today so we should focus on the statement itself as it is focused on the future. FOMC members always vote on where to set the target rate. All the individual votes are published in the FOMC statement afterwards. more…