Webinar: The Return of Yen Trends
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- With the U.S. Presidential Inauguration taking place tomorrow, we attempted to avoid diving too deep around USD to, instead, look at markets that may not be as vulnerable to near-term political pressures. We looked at USD/JPY as a proxy in order to investigate broad-based potential for Yen-weakness.
- The first pair we looked at was GBP/JPY, as the pair has rallied by more than 500 pips off of the lows, and is fast-approaching an area that would negate the recent bearish move (142.50). We looked at two different ways of trading the move, using both inside and outside price action, in the effort of bullish continuation in the pair.
- We then moved over to EUR/JPY which has been remarkably resilient considering the ECB’s past two meetings’ insertion of dovishness into the equation.
- We then looked at AUD/JPY, which is working with a long-term resistance level in the zone around 87.50.
- The one setup that we looked at on the strength side of the Yen was CAD/JPY, with the potential for deeper losses after yesterday’s Bank of Canada rate decision.
--- Written by James Stanley, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.