This exotic currency pair has been in a bullish trend over the past few weeks, due mostly to South Africa’s ongoing economic and political problems and partly due to USD strength. The news of the origin of a potentially dangerous coronavirus variant emerging in South Africa at the end of last week caused many countries to shut their doors on South African and other African travel, causing the South African Rand to nosedive and send this pair sharply higher to a new 1-year high price on strongly above-average volatility.
Unless it is quickly discovered that the omicron variant should not be as problematic as feared, it is hard to see how the closing of doors to South Africa is going to have anything other than a negative effect on the Rand over the coming days.
The Japanese yen is stronger than the USD so short ZAR/JPY will probably be a better trade if your Forex broker offers access to it.
Unless it is quickly discovered that the omicron variant should not be as problematic as feared, it is hard to see how the closing of doors to South Africa is going to have anything other than a negative effect on the Rand over the coming days.
The Japanese yen is stronger than the USD so short ZAR/JPY will probably be a better trade if your Forex broker offers access to it.