Good day dear #investors and colleagues #traders.
Your attention a technical analysis of the currency pair #Usdjpy:
#Comment_to_past_week:
The currency pair has become the main driver for all assets associated with the #yen. Market participants were, to put it mildly, shocked by Japanese #GDP data for the fourth quarter. Traders even needed to take a couple of days to analyze the received data in order to predict possible actions by the Central Bank of Japan.
Despite the fact that the central bank purchases assets everywhere, pours huge sums of money into the economy, all these actions cannot exactly disperse it.
Naturally, after such an impressive growth, and at the moment the growth reached 252 points, the investors decided to fix their positions before the CBA of Japan said their word.
As a result of the week, the currency pair added 180 points (+ 1.64%).
#Technical analysis:
Globally (D1):
Previously, the couple was in the wedge, last week the couple left this wedge forming an explicit ascending channel with the beginning of August 23, 2019.
Currently, the currency pair is in the center of this channel.
Locally (H1-H4):
Locally, the pair formed a correctional, descending channel on February 21. However, the current consolidation at levels 110.12 (technical level) and 110.07 (mathematical level) indicate a potential reversal.
This is especially true if the pair returns to the zone and continues to consolidate at these levels.
By tradition, we call the weekly support and resistance zones:
A) Support: 110.07 and 108.57;
B) Resistance: 112.00 and 112.64;
#Orders_and_position:
We remain aloof from actions on this currency pair, as well as on any pair with the yen, in view of tomorrow's meeting of the Bank of Japan (#BankofJapan.)
This is associated with the risk of possible inaction of Mr. #Haruhiko #Kuroda, the manager of the Central Bank of Japan.
Analyzing possible options, we understand that the arsenal of the Central Bank is already almost exhausted. The interest rate is already at a negative value, the quantitative easing program (#QE) is much more aggressive than in other countries.
Therefore, it is not clear what the Bank of Japan can give the markets.
It becomes especially impractical to open positions against the yen in view of the rumors that were even before the release of data on # GDP. They reported that the Central Bank is ready to either move away from its mandate, or even change it.
Due to such ambiguity, we do not open positions in one direction or another despite all the analyzes.
Recall that the meeting will be held this Thursday.
Regards to subscribers,
Ltd ”Wermelgion and Partners Investment”
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion and Partners Investment” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
Your attention a technical analysis of the currency pair #Usdjpy:
#Comment_to_past_week:
The currency pair has become the main driver for all assets associated with the #yen. Market participants were, to put it mildly, shocked by Japanese #GDP data for the fourth quarter. Traders even needed to take a couple of days to analyze the received data in order to predict possible actions by the Central Bank of Japan.
Despite the fact that the central bank purchases assets everywhere, pours huge sums of money into the economy, all these actions cannot exactly disperse it.
Naturally, after such an impressive growth, and at the moment the growth reached 252 points, the investors decided to fix their positions before the CBA of Japan said their word.
As a result of the week, the currency pair added 180 points (+ 1.64%).
#Technical analysis:
Globally (D1):
Previously, the couple was in the wedge, last week the couple left this wedge forming an explicit ascending channel with the beginning of August 23, 2019.
Currently, the currency pair is in the center of this channel.
Locally (H1-H4):
Locally, the pair formed a correctional, descending channel on February 21. However, the current consolidation at levels 110.12 (technical level) and 110.07 (mathematical level) indicate a potential reversal.
This is especially true if the pair returns to the zone and continues to consolidate at these levels.
By tradition, we call the weekly support and resistance zones:
A) Support: 110.07 and 108.57;
B) Resistance: 112.00 and 112.64;
#Orders_and_position:
We remain aloof from actions on this currency pair, as well as on any pair with the yen, in view of tomorrow's meeting of the Bank of Japan (#BankofJapan.)
This is associated with the risk of possible inaction of Mr. #Haruhiko #Kuroda, the manager of the Central Bank of Japan.
Analyzing possible options, we understand that the arsenal of the Central Bank is already almost exhausted. The interest rate is already at a negative value, the quantitative easing program (#QE) is much more aggressive than in other countries.
Therefore, it is not clear what the Bank of Japan can give the markets.
It becomes especially impractical to open positions against the yen in view of the rumors that were even before the release of data on # GDP. They reported that the Central Bank is ready to either move away from its mandate, or even change it.
Due to such ambiguity, we do not open positions in one direction or another despite all the analyzes.
Recall that the meeting will be held this Thursday.
Regards to subscribers,
Ltd ”Wermelgion and Partners Investment”
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion and Partners Investment” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
