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Strong Yen – The currency of the Day

Market Analysis


The dollar saw fresh lows in the early London session against the euro, yen and a number of other currencies, amid concerns about U.S. politics, where uncertainty reigns over implications president Trump handled the Flynn investigation and the Comey firing properly. EURUSD rose to a fresh six-month high of 1.1123, the pair’s highest level since the U.S. presidential election last November. Final Eurozone inflation figures were confirmed at 1.9% y/y in the HICP measure, as had been widely anticipated. USDJPY logged a new 12-day low in early US trade at 111.71. EURJPY also falls to week’s low of 124.15.

On the euro side of the equation, data have been generally encouraging, which along with the abatement of political existential risk in the Eurozone, looks set to pave the way for the ECB to finally make a start at de-stimulating monetary policy, while a stronger Yen weighed overnight on Japanese exporters, and the recent geopolitical concerns with North Korea’s test missiles.Hence a quick Short position in the hourly chart was taken in the EURJPY, with entry at 124.30, after pair broke the lower Bollinger Band. Target was set at last week’s low at 123.40, with support at 124.90. Pair has already broken 200-period EMA in the 1-hour chart, while RSI is at 25 slopping further down. In the 4-hour chart, Parabolic SAR turned negative in the morning.

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Andria Pichidi

Market Analyst


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