#USDJPY is The Yen Going to Get Weaker?
🔸After the market crash in august 5 the UADJPY pair reached 141.900, the lowest it has been in the last 7 months, falling below the 200 MA located at 151.400.
🔹The US Dollar strengthened slightly due to positive US economic data. US Retail Sales increased by 1%, exceeding expectations of 0.3%. Initial Jobless Claims fell to 227,000, down from 234,000.
🔸While the DXY index has fallen back to it's local low the USDJPY pair has not seen a similar move and the pair has actually increased by 5.3%, indicating JPYs weakness and marking the local high as 149.100.
🔹If we see more weakness on JPYs side then we can expect the pair to atleast move up to the 200 MA (151.416), from there it depends on the bulls ability to push the price above the 200 MA and the 50 (155.300) therefore positioning the price inside the rising channel and reclaiming all the recent losses in the process.
🔸But this scenario depends heavily on positive fundamentals on the Dollar side. The market is watching for comments from Federal Reserve officials. in case of a negative comment from the FED the pair can fall back to 145, 141, 140 and 137.500.
Zanzibar Trading
🔹The US Dollar strengthened slightly due to positive US economic data. US Retail Sales increased by 1%, exceeding expectations of 0.3%. Initial Jobless Claims fell to 227,000, down from 234,000.
🔸While the DXY index has fallen back to it's local low the USDJPY pair has not seen a similar move and the pair has actually increased by 5.3%, indicating JPYs weakness and marking the local high as 149.100.
🔹If we see more weakness on JPYs side then we can expect the pair to atleast move up to the 200 MA (151.416), from there it depends on the bulls ability to push the price above the 200 MA and the 50 (155.300) therefore positioning the price inside the rising channel and reclaiming all the recent losses in the process.
🔸But this scenario depends heavily on positive fundamentals on the Dollar side. The market is watching for comments from Federal Reserve officials. in case of a negative comment from the FED the pair can fall back to 145, 141, 140 and 137.500.
Zanzibar Trading
Заметка
It's Monday! The market is finally open. Let me know in the comments which scenario you think is more likely to play out
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