All aboard the Dollar train
The main focus during today’s Asian Trading session was the NATIONAL CORE CPI Y/Y for the JPY which came out rather disappointing. This was the second consecutive CPI miss and adds to the pressure on the currency after Wednesday’s miss on GDP.
Furthermore, the dollar is continuing to stay firm with the help of the 10yr US treasury yield firmly above the important 3% level. The dollar’s recent rally is showing a lot of resilience in spite of continuing and growing fears of trade wars between the world’s largest economies.
Our pair selection for today:
Given the recent JPY weakness and USD strength we have chosen the USDJPY as the highest probability pair to look for opportunities.
USDJPY – M30
USDJPY – H4
With the recent dollar rally we do not want to be buying at the top of an extended move. Thus, we would only feel comfortable with waiting for the price to pull back to the support levels highlighted to consider a long entry. The pair loves to move between psychological levels (stalled perfectly on 111.000), we will be watching for moves down to 110 or even 109 for good probability long entries.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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