Yen Finds Favor As Risk Aversion Continues
After the USD/JPY held after another test of 92.00 on Monday I was encouraged that my long position would yield a profit. Although, we did see a retrace back up to 92.93 failures to break above 93.00 and the acceleration of broader risk aversion led me to exiting the position at a small loss. The yen continues to find support as growth concerns increase, which can be seen in the commodity dollar cross. The AUD/JPOY and CAD/JPY have seen significant looses over the past few days and could be at over-sold levels providing a log opportunity. However, I still see a great deal of concern and falling prices in the U.S. could be a sign that the economy is slowing which could add to prevailing pessimism. Therefore, I will look to take advantage of additional bearish sentiment with a short CAD/JPY position if I see a break below the 200-Day SMA at 86.99.
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