|Day's range||108.35 - 108.35|
|52-week range||104.8710 - 114.1840|
The British pound slammed into a major level during the week, testing the ¥140 level. However, although there is supposedly a deal between Boris Johnson and the EU, Parliament has not voted on it and will do so during the weekend. Buckle up, this is going to be brutal.
The British pound approach the major level against the Japanese yen during trading on Friday, as the ¥140 level attracts a lot of attention. Ultimately, this is a market that should continue to see a lot of volatility, as is per usual.
While China’s economy slowed in the 3rd quarter, things could have been much worse. Relief all round as focus now shifts to Brexit…
The British pound went back and forth during trading on Thursday as per usual, as Twitter continues to cause major issues. There was the initial announcement that the EU and the UK had come to an agreement, followed by the DUP tweeting out that there were still a significant amount of “gaps” in the deal.
Basically, if today is clearly a “risk-on” day then we expect the USD/JPY to strengthen. “Risk-off” will put pressure on the Forex pair. The current price action suggests investors still aren’t sure about how to play the risk game. This is helping to generate the sideways performance.
Based on the early price action and the current price at 108.773, the direction of the USD/JPY the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 107.598.
The US dollar has pulled back slightly against the Japanese yen during the trading session on Wednesday, reaching down towards the 200 day EMA. This is an area that obviously will attract a lot of attention, and therefore a longer-term traders are suddenly involved.
The British pound continues to chop around against the Japanese yen as headlines continue to spoof the market. Just in the last few hours, the market has seen “EU sources” indicating that major hurdles have been moved out of the way, only to have those refuted by officials. In other words, Twitter continues to push the Forex world around.
The markets are relatively calm overnight despite the threat of countermeasures by China to the U.S. legislation supporting the Hong Kong protesters. However, investors have taken precautionary steps by buying the Japanese Yen, gold and Treasury bonds for protection.
Most Asian stocks are following their US counterparts higher, after strong earnings reports out of US banks gave equities another reason to climb higher, after the risk-on momentum from the US-China trade truce faded.
The US dollar pulled back a bit during the trading session on Tuesday, as we continue to press against a major area of resistance in the USD/JPY pair.
The British pound has been consolidating against the Japanese yen during the trading session on Tuesday, as we initially tried to break above the 200 day EMA but rolled over to show signs of weakness again. Ultimately, major decisions need to be made.
It was a quiet Monday session with the U.S. and parts of Asia out for bank holidays. Risk assets skewed lower, and US equities fell back a little on Monday after China signalled it wants more discussion to iron out details of any partial deal before signing it, including the removal of added tariffs planned for December.
The US dollar chopped back and forth during the trading session on Monday as the 200 day EMA continues to cause bits and pieces of resistance. Beyond that, the market is extraordinarily sensitive to a handful of issues going on around the world, not the least of which would be the lackluster performance of US/Chinese negotiators.
The British pound has been very choppy during trading on Monday, as we continue to see a lot of back-and-forth when it comes to risk aversion. The 200 day EMA has been tested, and it now has proven that it remains resistive. That being the case, a break above that, especially on a daily close, would be very strong.
A “risk off” day on Monday should keep the pressure on the USD/JPY. This is already being fueled by a report from Bloomberg News that said China needed to have further discussions before it would sign off on the so-called “phase one” trade deal President Donald Trump announced on Friday.
Based on the early price action and the current price at 108.318, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 108.235.
The Dollar found strong support early, as the markets considered the implications on existing tariffs on the economic outlook. Brexit chatter also weighed.
The announcement of the first phase of a substantial trade deal was obviously bullish for the Dollar/Yen, but since there was so much long speculation ahead of the announcement, most of the good news was probably priced into the Forex pair.