It may be Time to Buy Yen
Joe Perry September 10, 2019 12:35 PM
Is it time to buy Yen? And if so, in which pair?
Many of the Yen pairs have a had a nice rally off their lows from August 26th. On that date, we discussed how a false breakdown in many of the Yen pairs could lead to a 60 handles rally in S&Ps! The false breakdown was confirmed with the recent 5 day move higher in many of the Yen pairs, which helped to catapult XXX/JPY through triangle resistance to new highs, not seen in many pairs in over a month.
Source: Tradingview, FOREX.com
Here is the question now:
Is it time to sell Yen pairs (or buy Yen)? And if so, in which pair?
AUD/JPY looks like it may be a good candidate to go short if one wants to take a shot at buying Yen, which is currently trading at 73.74.
Source: Tradingview, FOREX.com
- The pair is currently up against downward sloping trendline resistance which goes back to April 19th near 73.80.
- AUD/JPY is running into horizontal resistance from the low on June 18th near 74.00
- The pair is near the 38.2% retracement level from the April 19th highs to the August 26th lows at 74.10.
Because of the potential strong resistance above, one may consider shorting AUD/JPY and placing a stop above the resistance area.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.