USDJPY – Short Term Bottom Done Despite Rising Yields?

USDJPY currently trading around 108.71 with relatively thin volumes as Japanese markets are in holiday and despite rising US Markets and 10-year note yield now at 2.90%, surpassing last week’s 4-year high. trading higher USDJPY pair is little changed from Fridays closing.

Early Tuesday, Japan will release its January Domestic Corporate Goods Price index and preliminary Machine Tool Orders. Japanese Preliminary GDP is expected to slow to 0.2% in the fourth quarter. Last week global market sell off triggerred strong relativity in currency markets. USDJPY made a low of 108.04, its lowest since September 2017.

Price momentum divergence is clearly visible on the 4 hour charts as the price is clearly moving in a sideways direction whereas momentum indicator MACD is showing a significant divergence which indicates potential trend reversal from the bottom. Short term supports coming around 108.20 with potential mean reversion could extend towards 110 and 110.5 levels.

Related Readings and Observations

USDJPY – Short Term Bottom Done Again as Korean Fears Fade? USDJPY tested April 2017 low on fears that Pyongyang (North Korea) would launch another missile test over the weekend, which had added to last Friday’s USDJPY selloff. Last friday Yen had […]
USDINR Long Term and Short Term : July Month Overview USDINR on the daily charts very recently turned to long term buy mode since 16th June 2014. Currently the EOD support comes near to 59.06. USDINR will turn to long term sell mode if the […]
USDJPY Trend Reversal and North Korean Missile Japan's currency USDJPY, strengthened as North Korean launched a missile that crossed over Japan on 29th Aug 2017. Yen had made a low around 108.27 and made a 2-month low followed by a […]
EURUSD Trend Overview for July 2017 EURUSD on the monthly timeframe trading in a larger balance between 1.0482 and 1.145 (rough estimate) since the start of 2015. Its been more than 2 years and EURUSD is trading is the […]
EURUSD Trend Overview for April 2017 EURUSD on the monthly timeframe trading in a larger balance between 1.0482 and 1.145 (rough estimate) since the start of 2015. Its been more than 2 years and EURUSD is trading is the […]
EURUSD Outlook – Euro Traders Await the Fed The EUR/USD consolidated its recent gains following a surge in the exchange rate in the wake of the ECB meeting. While the central bank mostly stuck to the script, keeping rates unchanged […]