Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Yen: Strongest Currency for the day

Market Analysis


Today, USDJPY is lower after briefly rallied at Asia-Pacific open, leaving a peak at 112.98, seven pips shy of last week’s two-month high. The pair has since ebbed back to around 112.50. Risk appetite was high in Asian markets, though the Shanghai Composite hit a seven-month low (as a consequence of Beijing’s attempts to cool China’s property market), and European bourses headed southward.  EURCHF is on the up as franc safe-haven premium unwinds following the French election, while CHFJPY is also up strongly, by 0.7%, since CHF consider be the weakest currency for the day and Yen the strongest one. The weaker franc will be joyous news for Swiss policymakers, which consider it one of the world’s most over-valued currencies in purchasing power parity terms.

Yen remained strong also against other currencies such as Australian dollar. Technically, the head and shoulders pattern noticed in the 4-hour chart of AUDJPY, peaked my interest. Consequently, I have entered a SHORT position at 83.30 with an initial target 1 at the 50.0 Fibonacci level at $83.00, which is a confluence of ATR in 4-hour chart. Target 2 is at 82.70. Support was set at 84.00.

The crossing today of 20-period EMA below 50-period EMA suggested that further downside is likely to continue, while the pair broke earlier the significant 200-period EMA earlier and moves below that level. RSI remains neutral at  42 but slopes down from the overbought high at 76 last week. In the daily chart, the parabolic SAR turn negative on Friday. MACD remains negative in both 4-hour and Daily charts.

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


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.