The JPY looks set to turn higher as risk aversion builds

29. June 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

The strong move lower in global equities over the last 24 hours is giving the JPY a boost. The 6J (JPY) looks set to rally as we may have put in a false breakdown below the 2007 low and may breach a down trend line that has been keeping the JPY pressured since mid 2014.

6-29-156J1

Also, you may have noticed the divergent RSI that looks like it may break higher as well.

6-29-156J

Due to the recent events in Greece, Puerto Rico and the sell off we had seen in Asian equities even after China cut rates over the weekend, the JPY may come back into demand as investors look for a safe haven currency. Since the JPY seems so oversold, the JPY may be in a perfect storm to stage a rally.

There are many currency crosses with JPY pairs that could be set to move too. The GBP/JPY, AUD/JPY, CAD/JPY and the NZD/JPY to name a few.

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am short the USD/JPY from last week, I am actively looking to sell other JPY cross pairs currently

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10 Yr Bull Flag Pattern, USD/JPY at Risk of a Fall

15. April 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

The 10 year bond is in rally mode. And although up against some key resistance, the flag pattern points much higher.

As a currency trader this matters to me since I am short USD/JPY and we are just 20 pips from critical support.

As you can see in this chart, if bonds rally and yields fall, the USD/JPY (yellow line) is likely to trade south as well. There is a very strong iverse relationship with the two instruments.

4-15-1510yrJPY

Blake Morrow

Chief Currency Strategist

 

Disclaimer: I have been short USD/JPY for many weeks and may add to my existing position

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Nikkei and JPY are not “Jiving”

12. March 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

When the Nikkei hits highs, typiclly the JPY will hit lows. What you will notice below is the Nikkei futures (yellow line) is breaking out higher, but the 6J JPY futures (candlestick chart) is developing a double bottom. I suspect one is going to give was soon.

3-12-156JNKD

The Nikkei is pushing the 161%v extension, RSI on the daily chart is divergent. With currencies like the EUR/JPY are looking very bearish on the weekly charts, there is quite a battle going on at the moment.

3-12-15NKD

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am long some JPY in hopes that the Nikkei turns from this key resistance.

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EDGE Chart of the Day 5-21-14 USD/JPY

21. May 2014 · Write a comment · Categories: EDGE Chart of the Day · Tags: ,

5-21-14USDJPY

 

The USD/JPY bounced off horizontal support, the 200 day SMA and also looks to create a very long wick daily hammer. I doubt this will change the course of the USD/JPY (meaning I believe it will move lower in weeks to come) but may be good for a bounce for the next 1-2 days.

Blake Morrow

 

Chief Currency Strategist, Wizetrade

 

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