Trading Forex and CFDs is risky

USDJPY – A Strong Day

Market Analysis
2017-01-26_12-30-28

USDJPY, Daily             

The dollar has sprung to life, led by a strong spurt in USDJPY, which is now showing 0.7% gain on the day after rising over 50 pips to levels above 114.20. EURUSD dropped from above 1.0750 to a low of 1.0716 low, bringing recent lows at 1.0706-11 back into scope, a support zone which we see as a key near-term risk level. The dollar’s rally appears to be a delayed reaction to the Dow’s conquering of the 20k level, and with S&P and Nasdaq having clocked record highs yesterday, which in turn reflects a revival in bullish sentiment regarding the Trump administration’s plans to reflate the U.S. economy. The risk-on vibe is also accounting for the yen’s underperformance, as safe haven premiums unwind. USDJPY’s 20- and 50-day moving averages beckon, at 115.15 and 115.02.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Andria Pichidi

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.