Friday, March 31, 2023
  • Login
  • Register
btclive365.com
  • Home
  • Cryptocurrency News Today
  • Bitcoin (BTC)
  • Altcoins
  • Blockchain
  • Crypto Mining
  • CryptoCurrency Predictions
  • Defi
  • Dogecoins
  • Earn Crypto
  • Ethereum (ETH)
  • Forex Trading
  • ICO
  • Litecoin ( LTC )
  • NFT
  • Ripple
  • Trend cryptocurrency
No Result
View All Result
  • Home
  • Cryptocurrency News Today
  • Bitcoin (BTC)
  • Altcoins
  • Blockchain
  • Crypto Mining
  • CryptoCurrency Predictions
  • Defi
  • Dogecoins
  • Earn Crypto
  • Ethereum (ETH)
  • Forex Trading
  • ICO
  • Litecoin ( LTC )
  • NFT
  • Ripple
  • Trend cryptocurrency
No Result
View All Result
btclive365.com
No Result
View All Result
Home Forex Trading

Descending Triangle Highlights Yen’s Short-Term Prospects

btclive365 by btclive365
November 9, 2022
in Forex Trading
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


USD/JPY News and Analysis

  • Disappointing Chinese data, Guangzhou district lockdowns weigh on risk sentiment
  • Yen performance may prove short-lived despite bearish triangle as the 145 psych level holds firm for now. Carry trade dynamics remain strong as the Fed continues to hike
  • US CPI and Michigan consumer sentiment data up next with Japan GDP next week

Recommended by Richard Snow

Get Your Free JPY Forecast

Disappointing Chinese Data, Guangzhou District Lockdowns Weigh on Risk Sentiment

News of anther district lockdown in the major manufacturing hub on Guangzhou has added to the recent decline in risk sentiment after the crypto world experienced another ‘shock’ as Binance announced its intention to take over rival crypto exchange FTX amid mass liquidity shortages subject to due diligence.

Overnight, it appears that the Japanese Yen was the main beneficiary of recent developments as it emerged the top forex performer in the early hours of the morning, with the NZD underperforming – possibly in reaction to the negative news accruing in China. A weaker dollar coupled with a volatile crypto market has also spurred gains in gold – an asset, much like the yen, which is viewed as a safe haven. Earlier this morning Chinese CPI missed estimates of 2.4%, printing at 2.1%, underscoring threats of deflation as the nation continues to prioritize its zero-COVID policy over economic growth.

Currency Performance Chart Overnight

image1.png

Source: FinancialJuice,

The short-term decline of the USD/JPY forex pair is not surprising, given the recent dollar and US 10 year treasury declines. Markets are pricing in a lower rate hike for December (50 bs vs 75 bps) after Jerome Powell communicated that at some point it will become appropriate to slow the pace of rate hikes. The market viewed this as an opportunity to somewhat deflate the long dollar trade which has seen lower moves in USD/JPY.




of clients are net long.




of clients are net short.

Change in Longs Shorts OI
Daily 7% -5% -1%
Weekly 7% -6% -2%

Yen Performance May Prove to be Short-Lived Amid Significant Support

USD/JPY trades a little over 4% lower from the most recent FX intervention efforts executed by Japan’s Ministry of Finance on Friday the 21st of October after Asian and European traders had already headed home. Previous efforts to lower USD/JPY forex valuations received little follow through, however, this time around there appears to be more bang for Beijing’s buck – helped by a weaker USD.

On the daily chart a descending triangle appears, although this pattern is usually observed within the context of a broader downtrend and not an uptrend as has been the case. Nevertheless, a break below the pattern around 145.20/00 may indicate the potential to trade lower, something the MACD indicator suggests is possible.

In the meantime, USD/JPY reveals considerable support standing in the way of a move lower. The 50 SMA, 145 psychological level and unconvincing fundamentals suggest that USD/JPY may remain supported for longer. It appears that shorter-term drivers of the yen are just that, short-term, and a reversal of the carry trade remains a way off as the Fed intends to hike rates to 5% early next year – widening the interest rate differential between the two nations.

USD/JPY Daily Chart

image2.png

Source: TradingView, prepared by Richard Snow

The 4-hour chart reveals the significance of the 145 level which has acted as resistance, and support in more recent times. In addition, the presence of those extended lower wicks over the last few candles suggest a reluctance to trade lower in the absence of a catalyst.

USD/JPY 4-Hour Chart

image3.png

Source: TradingView, prepared by Richard Snow

Major event risk this week focuses on US CPI – which is forecast to remain elevated despite a 0.2% drop expected year-on-year. On Friday we have the Michigan consumer sentiment report which will be interesting to read after the ‘state of the economy’ was identified as the main issue facing those who intended to vote in yesterday’s US midterm elections.

image4.png

Customize and filter live economic data via our DaliyFX economic calendar

Trade Smarter – Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

— Written by Richard Snow for DailyFX.com

Contact and follow Richard on Twitter: @RichardSnowFX





Source link

Previous Post

Which Platform is Best for Blockchain Development?

Next Post

Grantee Roundup: May 2022 | Ethereum Foundation Blog

btclive365

btclive365

Next Post

Grantee Roundup: May 2022 | Ethereum Foundation Blog

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 23.8k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest

How to sell Bitcoin – Bitcoin Magazine

November 9, 2022

Add a Tangible Asset to Your Portfolio: Buy Gold

January 7, 2023

Building Bitcoin Standard In Portugal – Bitcoin Magazine

November 9, 2022

USD/ZAR Rallies as SA President Ramaphosa Faces Potential Impeachment

December 1, 2022

Bitcoin price hits 2-week lows as FTX ‘bank run’ drains BTC reserves

1

Building Homesteader Lifestyle With Bitcoin – Bitcoin Magazine

1

Arbitrum dealings activity rockets 550% since August: Delphi Digital

0

Bitcoin․com Doubles Down on Self-Custody With Launch of Verse DEX – Press release Bitcoin News

0

Need to balance risk that we don’t do enough on inflation vs doing too much

March 31, 2023

Is a housing crisis underway? Why crypto investors should care

March 31, 2023

James Corbett Explains How Bank Crisis Could Lead to CBDC ‘Nightmare of Total Monetary Control’ – Interview Bitcoin News

March 31, 2023

Crypto Market Briefly Turns Green Post U.S PCE Price Index Report

March 31, 2023

Recent News

Need to balance risk that we don’t do enough on inflation vs doing too much

March 31, 2023

Is a housing crisis underway? Why crypto investors should care

March 31, 2023

James Corbett Explains How Bank Crisis Could Lead to CBDC ‘Nightmare of Total Monetary Control’ – Interview Bitcoin News

March 31, 2023

Crypto Market Briefly Turns Green Post U.S PCE Price Index Report

March 31, 2023

We deliver up-to-date, breaking crypto news about the latest Bitcoin, Ethereum, Blockchain, NFTs, and Altcoin trends and happenings

Follow Us

Browse by Category

  • Altcoins
  • Bitcoin (BTC)
  • Blockchain
  • Crypto Mining
  • Cryptocurrency News Today
  • CryptoCurrency Predictions
  • Defi
  • Dogecoins
  • Earn Crypto
  • Ethereum (ETH)
  • Forex Trading
  • ICO
  • Litecoin ( LTC )
  • NFT
  • Ripple
  • Trend cryptocurrency

Recent News

Need to balance risk that we don’t do enough on inflation vs doing too much

March 31, 2023

Is a housing crisis underway? Why crypto investors should care

March 31, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2022 btclive365 All Right Rivered .

No Result
View All Result
  • Home
  • Cryptocurrency News Today
  • Bitcoin (BTC)
  • Altcoins
  • Blockchain
  • Crypto Mining
  • CryptoCurrency Predictions
  • Defi
  • Dogecoins
  • Earn Crypto
  • Ethereum (ETH)
  • Forex Trading
  • ICO
  • Litecoin ( LTC )
  • NFT
  • Ripple
  • Trend cryptocurrency

© 2022 btclive365 All Right Rivered .

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In