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Yen continues to outperform

Market Analysis


The yen has continued to outperform, aided by positive Japanese data and flagging risk appetite in global markets. Japanese data showed labour demand to be at its strongest in 40 years while retail sales rose a more than expected 3.2% y/y. The euro came under broad pressure from late yesterday through to the early session in Europe today before rebounding. EURJPY and other euro crosses also rebounded from lows ahead of the London open. The recovery came after Greece downplayed reports that about a debt repayment standoff with creditors, and despite an unexpected dip in the latest Eurozone ESI economic confidence indicator and sub-forecast German inflation figures, data that chimed with dovish rhetoric from ECB president Draghi this week

From the other JPY crosses the stronger Kiwi attracted a long position on the 4 hour NZDJPY chart. The long legged doji candle occurred early today, with a strong bullish candle afterwards, were sufficient enough to prompt a long intraday position at 78.39.  The pair broke upwards the 50-period EMA in the morning and continues to move northwards by breaking just now the 20-period SMA as well.  Target 1 is the 23.6 Fibonacci Level at 78.62.  Target 2 is near the last 2 weeks high at 78.90.  Support set at 77.85, which is also the 200-period EMA in the 4 hour chart.

The RSI is neutral, while MACD remains positive. On the other hand, Parabolic SAR is positive in the Daily chart but not in the 4-hour one.


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Andria Pichidi

Market Analyst


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