Good day, dear investors and colleagues traders!
Your attention a technical analysis of the currency pair #Usdjpy:
* Commentary last week and some fundamental data:
All last week passed in a narrow trading range of 56 points. The currency pair cannot determine the true direction of the trend. On the one hand, there are many positive macroeconomic data on the US economy, on the other hand, the catastrophic consequences of coronavirus on the Chinese economy and, as a consequence, on the global economy.
Portfolio managers are increasingly seeing the main chain of all events:
The recession of the Chinese economy leads to a global recession ---> a general global recession will generate demand for protective currencies such as the yen, dollar, franc and so on.
But in the case of the yen, the situation is best, since a crisis in the global economy will absolutely definitely reduce energy prices, especially given that the main importer of petroleum products is at the epicenter of the crisis.
Therefore, the balance of payments of Japan will begin to grow and the demand for the yen among residents will begin to increase, as we have already seen in the period of 2016.
However, if the recession in global stock markets is added to this, Japanese investors will want to get out of these financial products and begin the repatriation of capital according to the following scheme:
Step # 1: Selling a stock --- ≥ Buying a dollar;
Step # 2: Selling the dollar --- ≥Purchasing the yen;
It is this scenario that can cause a landslide strengthening of the Japanese currency and the Japanese Central Bank will absolutely not be able to do anything to prevent the strengthening of the yen.
* Technical comment:
By time frames:
By time frames:
Thus, analyzes of the three time frames indicate that the price will soon move to 108.66.
* Orders and positions:
We continue to consider the current levels as an excellent opportunity to open short positions on the dollar / yen with a target at 108.60 and a stop at 110.30. In this case, the ratio is RR 2.6, which is extremely interesting for any investor.
(! Attention, these are preliminary price levels and we reserve the right to change them in our trading).
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:
* Commentary last week and some fundamental data:
All last week passed in a narrow trading range of 56 points. The currency pair cannot determine the true direction of the trend. On the one hand, there are many positive macroeconomic data on the US economy, on the other hand, the catastrophic consequences of coronavirus on the Chinese economy and, as a consequence, on the global economy.
Portfolio managers are increasingly seeing the main chain of all events:
The recession of the Chinese economy leads to a global recession ---> a general global recession will generate demand for protective currencies such as the yen, dollar, franc and so on.
But in the case of the yen, the situation is best, since a crisis in the global economy will absolutely definitely reduce energy prices, especially given that the main importer of petroleum products is at the epicenter of the crisis.
Therefore, the balance of payments of Japan will begin to grow and the demand for the yen among residents will begin to increase, as we have already seen in the period of 2016.
However, if the recession in global stock markets is added to this, Japanese investors will want to get out of these financial products and begin the repatriation of capital according to the following scheme:
Step # 1: Selling a stock --- ≥ Buying a dollar;
Step # 2: Selling the dollar --- ≥Purchasing the yen;
It is this scenario that can cause a landslide strengthening of the Japanese currency and the Japanese Central Bank will absolutely not be able to do anything to prevent the strengthening of the yen.
* Technical comment:
By time frames:
By time frames:
- On 1 hour : local consolidation which reduces the amplitude coefficient and demonstrates all the signs of the technical figure "head and shoulders" with a target of 108.66.
On 4 hour : the picture shows a wedge with a high point of 110.66 and a lower point at 108.69.
On day : the asset is in the upward channel, however, a drawn pin-bar and consolidation below the level of 110 yen per dollar alludes to a quick turn to the lower border of the upward channel to 108.66.
Thus, analyzes of the three time frames indicate that the price will soon move to 108.66.
* Orders and positions:
We continue to consider the current levels as an excellent opportunity to open short positions on the dollar / yen with a target at 108.60 and a stop at 110.30. In this case, the ratio is RR 2.6, which is extremely interesting for any investor.
(! Attention, these are preliminary price levels and we reserve the right to change them in our trading).
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.
