Yahoo Finance Yen Stays in Focus as Opportunity Rises
Having touched important support levels as risk adverse trading flared, the Japanese currency is a candidate to stabilize the next day if the Nikkei Index become more tranquil and turns positive.
Taking Advantage of Japanese Holiday
We remain focused on the Yen. Japan is on a holiday and this gives traders a chance to examine sentiment as other major currencies move against the slightly weaker U.S Dollar.
The Yen gained plenty of strength the past week as global equity markets, including the Nikkei Index, experienced massive volatility and declines. The Yen is near 108.65 versus the U.S Dollar today, and important support appears to be the 108.00 juncture.
Yen Remains Intriguing Prospect for Traders
The intriguing aspect for traders is the possibility the Nikkei Index may open in a positive manner early on Tuesday, particularly if Wall Street turns in another stable day of trading today.
We point this out because the Nikkei Index never got a chance to react to Friday’s gains on the major U.S exchanges. Meaning if sentiment does become more tranquil in Asian markets, Japanese investors may increase their risk appetite and buy the U.S Dollar against the Yen as they return from their holiday.
In the short term, we believe the Yen may be negative. 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
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