Wednesday, 27 July 2016

[JPY] Does Yen Turn to Weak?


USD/JPY 1-hour chart, source: forexfactory.com

USD/JPY weekly chart, source: forexfactory.com

One of the major currency pair USD/JPY rises since Tuesday. Its price rises withouth adjustment and it may face the resistance and the adjustment around 106.00.





How long does an upturn continue? First, we need to watch whether Japanese Yen breaks through the anticipated resistance price band, 106s. If it breaks through, the price of the currecny pair may rise gradually. There will be an adjustment, of course. After the adjustment, we need to the market if the price turns down or rebounds.





The weekly chart shows the V pattern after the downward trend. The V pattern means the rapid price rising. But its reliability is lower than that of double-bottoms pattern or reverse head-and-shoulders pattern. A long position now seems not to be advisable. We need to wait where the price moves after facing 106s band.





Politic and economic news signals weak Yen, rise of USD/JPY. Japanese Prime Minister Shinzo Abe announced plans Wednesday for more than 28 trillion yen ($265 billion) in economic stimulus in an effort to prop up the nation’s economy, economy news agency bloomberg reported on this day.





Japanese ruling party led by Shinzo Abe won the upper-house election on July 10. Prime Minister Abe declared the stimulus of Japan economy. Japan’s Topix stock index has risen more than 9 percent since the election victory and the yen has weakened almost 5 percent amid anticipation of the plan.

http://cafe.naver.com/gjallarhorn/50

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