On the surge of last December's US economic uncertainties (US-China trade wars and US government shutdown), JPY played its role as the world's safehaven currency and rallied back to its mid 2018's levels. After about 3 months of sideways trading, Trump's impromptu tweet on the weekend caused an immense gap, as he announced increased tariffs on China.
USDJPY is now trading below the support established on mid february, and the path of least resistance is down. However, we must consider a couple of factors: investors keen on avoiding risk already bought in JPY, since it was in their best interest to secure the currency's prime quotes. So the increased tariff announcement could be already priced in.
Nevertheless, this is a key level of interest. Both bulls and bears have their eyes set on this horizontal line and whoever dominates the markets from now could either set a downtrend or reinstate the previous range.
We are refraining from making a call from this point, as we recently closed our shorts from our previous posted trading idea. We will be watching price action closely and then decide what to do. Remember that a trader's standard position is doing nothing.
What are your thoughts, though? Leave your comments below, post your own ideas and let us know what you think! Also, don't forget to like our post and to follow us!
Have a great trading session!
USDJPY is now trading below the support established on mid february, and the path of least resistance is down. However, we must consider a couple of factors: investors keen on avoiding risk already bought in JPY, since it was in their best interest to secure the currency's prime quotes. So the increased tariff announcement could be already priced in.
Nevertheless, this is a key level of interest. Both bulls and bears have their eyes set on this horizontal line and whoever dominates the markets from now could either set a downtrend or reinstate the previous range.
We are refraining from making a call from this point, as we recently closed our shorts from our previous posted trading idea. We will be watching price action closely and then decide what to do. Remember that a trader's standard position is doing nothing.
What are your thoughts, though? Leave your comments below, post your own ideas and let us know what you think! Also, don't forget to like our post and to follow us!
Have a great trading session!
