 |
| USD/JPY four-hour chart, source:FXDD.com |
cf. [JPY] Fear Easing and Yen Falling 2020 0205
cf. [JPY] Rising Yen 2020 0130
cf. [JPY] Rising Expected after Correction 2020 0126
The pandemic breaks a dashboard of economy.
Currency pair USD/JPY rises completing price-rising pattern, double-bottoms pattern in the four-hour chart and V pattern in the daily chart respectively. And it surges strongly from under the bottom band of Bollinger Bands in the weekly chart. We can guess the currency pair will keep upward.
The price plunged under the support line three weeks ago, and it is still under the line and faces it soon. The line which was support line at 109.11, may hinder the rising price. And there will be the correction.
If you buy long position of USD/JPY, you can get a chance when it rebound after the temporary correction.
Yen fell 0.42 percent or 0.45 yen against dollar on Wednesday.
The pandemic of coronavirus, CoVid-19 recalls global financial crisis and drags financial asset down. And it boosts US dollar. When the scare of recession, investors buy safe-haven asset such as greenback, Swiss Franc and Japanese Yen as well as traditional gold.
But in this case, investors buy only US dollar and dollar price surges against most of another currencies. Therefore Dollar Index(USDX), dollar's value against the basket of six major currencies rose 1.46 percent to 100.976 recording high since March 2017 on Wednesday.
The economic blockade due to the respiratory virus outbreak makes people worry about dollar liquidity and buy greenback.
The economy news agency, Yonhap Infomax reported, the increasing dollar demand called liquidity deficit of greenback. And it reported, Goldman Sachs said, strong dollar reflected the greenback's position in the global economy and the finance system, and it raised dollar.
Japanese central bank, Bank of Japan decided to increase Quantitative Easing on Monday, but it is not helpful yet.
And Federal Reserve cut the Federal Funds Rate one percent point to near zero percent and began the Quantitative Easing Program simultaneously on Sunday, before the opening of Asian stock market and Forex market. The US economy daily Wall Street Journal reported, Fed has never cut the benchmark interest rate two times between regular FOMC meetings since 1994. It means Fed thinks the economic crisis due to the pandemic of CoVid-19 outbreak seriously.
It is reasonable just to watch the market without position. But if the deal should be gone on, Dollar Long position is valid till the medicine or vaccine against the respiratory virus are developed.
Gjallarhorn doesn't have any position of currency pair and futures items.
------------------------
You can join telegram channel t.me/gjallarhorn_report .
If this report was helpful to you, please support it. The amount of your support is up to you.
PayPal kmuk001@gmail.com.
Thank you.
e-mail - kmuk001@gmail.com
Telegram - @morgenluft
Telegram broadcasting - t.me/gjallarhorn_report
https://www.facebook.com/Gjallarhorn.report/
https://www.facebook.com/heimdallr999/
http://morgenluft.blogspot.com
#Gjallarhorn, #JPY, #yen, #USDJPY #걀라호른
No comments:
Post a Comment