Advertisement
UK markets closed
  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     
  • FTSE 250

    19,391.30
    -59.37 (-0.31%)
     
  • AIM

    745.67
    +0.38 (+0.05%)
     
  • GBP/EUR

    1.1607
    -0.0076 (-0.65%)
     
  • GBP/USD

    1.2370
    -0.0068 (-0.55%)
     
  • Bitcoin GBP

    51,969.51
    +595.17 (+1.16%)
     
  • CMC Crypto 200

    1,384.24
    +71.62 (+5.46%)
     
  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     
  • DOW

    37,986.40
    +211.02 (+0.56%)
     
  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     
  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     
  • HANG SENG

    16,224.14
    -161.73 (-0.99%)
     
  • DAX

    17,737.36
    -100.04 (-0.56%)
     
  • CAC 40

    8,022.41
    -0.85 (-0.01%)
     

September 2017 Support in Play for Yen Soon?

September 2017 support levels may now become the focus for Yen traders.

Yen Proves Capable of Sustaining Gains

The Yen has proven capable of sustaining strong gains against the U.S Dollar. The Japanese currency is near 110.80 after having broken important support levels last week.

USD/JPY 1H Chart
USD/JPY 1H Chart

A look at a short-term and a mid-term chart of the Yen is probably enough to make short-term traders suspicious about the Yen’s strength continuing to prosper.

Deflationary Crisis Coming to an End in Japan

However, recent economic data from Japan has highlighted an improving statistical landscape for the nation. And the Bank of Japan has been quoted as saying, it believes the deflationary crisis which has plagued the country may be approaching its end.

USD/JPY 4H Chart
USD/JPY 4H Chart

The Nikkei equity index has certainly achieved solid gains the past six months, and interestingly the Yen has started to show divergence with the Nikkei Index.

Long-Term Chart Provides Tempting Ratio

The past few years have seen the Yen weaken if the Nikkei has grown stronger, but the past couple of months have begun to produce a different trend line.

ADVERTISEMENT

Interestingly a long-term chart of the Yen may provide the impetus for traders to remain sellers of the U.S Dollar against the Yen. Critical support ratios were tested this past September and the Japanese currency may again try to test the 109.00 price levels.

USD/JPY Daily Chart
USD/JPY Daily Chart

In the short term, we believe the Yen may be positive. In the mid-term and long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

This article was originally posted on FX Empire

More From FXEMPIRE: