Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Yen Crosses in Different Time-frames

Market Analysis

EURJPY, H4  and CADJPY, H1 & M30

Yen crosses continued to lead broader declines amid a mix of bearish drivers, including year lows in U.S. Treasury yields, risks for a further ratcheting up in North Korea tensions as the rogue nation nears nuclear ICBM capability, and the dollar-bearish narrative being generated by Hurricane Irma’s track toward the south east U.S. USDJPY clocked 10-month lows of 107.50. The pair has shed 2.6% so far this week, which is the biggest movement on our currency comparison grid.

However, despite the fact that Risk-off remains in place, driven by N. Korea, U.S. politics, and another hurricane about to hit the U.S. Southeast, intra-daily, CADJPY seems to run out of steam on the downtrend movement for now. The CADJPY rebounded at 30 pips up on Strong Canadian Labor data. Canada employment grew 22.2k in August after the 10.9k gain in July. The gain in total jobs was roughly as-expected. But full time employment fell 88.1k after a 35.1k gain. Part time employment surged 110.4k following a 24.3k drop. The unemployment rate fell to 6.2% from 6.3% in July. The participation rate was 65.7, matching the 65.7 in July.

Hence in the 30Minutes chart, an entry was taken once that Morning star was confirmed which is also the confluence of a new Low Fractal. Hence once the particular Candlestick pattern confirmed, entry was taken on the open price of the new 30M candle, i.e at 88.95. Support was set at 200-period SMA, which is at 88.60, while targets are at 89.20 and 89.50 . The Stochastics (7-period) suggests that intra-day bullish move is possible, by presenting a bull cross upwards earlier.

Meanwhile another entry was taken in a 4-Hours time-frame in the EURJPY.  The entry was taken on the break of 200-period EMA, at 129.60.  Therefore by considering geopolitics and hurricane effects that is likely to continue over the weekend, a SHORT entry was taken. The Tweezer Top pattern formed yesterday along with two consecutive 4-hour candles today that broke the 50 and 200 EMA suggest that weakness might continue for a bit. The RSI is at 41, while only one target was set at this entry which is at 129.20 and support is at 130.20.

 

 

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! 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.