The problem for all Yen pairs is that there could be a major stock market correction anytime soon. I don't know when soon is!
The Yen and USD are safe-haven currencies in times of crisis. This means that when a crash/correction is imminent. Yen and USD moves up in demand ahead of stock markets moving south. Interestingly on Friday 14th Sept 2018 it was noticeable that the Yen was appreciating across nearly all currency /JPY pairs, ahead of the markets fighting to move north.
This weekend those who have access to Sunday stock markets on IG.com for example will see an early retreat of Wall Street of some 49 pts (@19:15PM GMT). That's significant for weekend Wall Street. Just to be clear, this doesn't mean markets are crashing. It means there is instability.
The VIX is beginning to 'boil' again after a major pulse in early Feb 2018 on daily time frame, and the 4H to 1-day time frame is into a bullish trend north just above a level of support. This is not a good sign for the future. When the VIX spikes sharply as it did in Feb 2018, this is usually a sign of trouble to come. How reliable is another matter. I'm not saying that the VIX predicts anything. I'm saying the probabilities are troubling. If markets fall or correct seriously, then all Yen and USD pairs are likely to be seriously affected. So **/JPY and pairs could fall.
The problem for all Yen pairs is that there could be a major stock market correction anytime soon. I don't know when soon is!
The Yen and USD are safe-haven currencies in times of crisis. This means that when a crash/correction is imminent. Yen and USD moves up in demand ahead of stock markets moving south. Interestingly on Friday 14th Sept 2018 it was noticeable that the Yen was appreciating across nearly all currency /JPY pairs, ahead of the markets fighting to move north.
This weekend those who have access to Sunday stock markets on IG.com for example will see an early retreat of Wall Street of some 49 pts (@19:15PM GMT). That's significant for weekend Wall Street. Just to be clear, this doesn't mean markets are crashing. It means there is instability.
The VIX is beginning to 'boil' again after a major pulse in early Feb 2018 on daily time frame, and the 4H to 1-day time frame is into a bullish trend north just above a level of support. This is not a good sign for the future. When the VIX spikes sharply as it did in Feb 2018, this is usually a sign of trouble to come. How reliable is another matter. I'm not saying that the VIX predicts anything. I'm saying the probabilities are troubling. If markets fall or correct seriously, then all Yen and USD pairs are likely to be seriously affected. So **/JPY and pairs could fall.