Forex Strategy Video: USDJPY, EURJPY Drop a Full Scale Risk Aversion Signal?
• Both US equities and USDJPY dropped to start the week, reviving speculation of a risk aversion wave
• Momentum in 'risk off' comes when the theme is so deeply engrained it pervades all asset classes
• The evidence is building between yen crosses, global equities and volatility; but we aren't there yet
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In the scale of market-moving scenarios, full-scale risk aversion presents the greatest potential for risk...and opportunity. Has Monday's USDJPY and S&P 500 drop signaled the first move for this long-feared / awaited shift? In today's Forex Strategy Video, we look at the indications thus far; what to watch for to keep track of the scale and conviction of a sentiment change; and the trades that would be presented in the transitional period.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.