• 860 days Will The ECB Continue To Hike Rates?
  • 861 days Forbes: Aramco Remains Largest Company In The Middle East
  • 862 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,262 days Could Crypto Overtake Traditional Investment?
  • 1,267 days Americans Still Quitting Jobs At Record Pace
  • 1,269 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,272 days Is The Dollar Too Strong?
  • 1,272 days Big Tech Disappoints Investors on Earnings Calls
  • 1,273 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,275 days China Is Quietly Trying To Distance Itself From Russia
  • 1,275 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,279 days Crypto Investors Won Big In 2021
  • 1,279 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,280 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,282 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,283 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,286 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,287 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,287 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,289 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

USD/JPY: Nears key support

USD/JPY Daily Chart

The US Dollar Index continues to feel the pain, but relief may soon be in sight. According to the Daily Sentiment Index, the Dollar is at an extreme with only 5% of participants bullish. The Greenback's oversold condition is evident against its major counterparts when looking at most daily indicators and is now approaching a net $20 billion short position among large speculators (CFTC). More importantly, risk aversion looks like it may be rearing its ugly head again, as seen in recent activity in credit-default swaps, the VIX and bond price-action. While this may not bode well for most traders, the "risk-off" trade tends to benefit the DXY. And with Japan's recent commitment to weaken the Yen, the USD/JPY is expected to remain well-bid ahead of the 83 handle. Since intervening, the trade-weighted Yen has slowly grinded higher, doubling the amount of time it took to fall from recent highs. As such, a higher low for the USD/JPY is sought near the intersection of a key Fibonacci retracement and a former trendline at 83.50. Meanwhile, the big picture downtrend remains firmly intact while trading below 85.87, the 25% retracement of the entire move off the 2010 high.

STRATEGY: BUY USD/JPY at 83.50, risking 82.70, targeting 85.15

 

Back to homepage

Leave a comment

Leave a comment