JPY strength - good for a short? CADJPY or GBPJPY interestingGood Monday!
this is a good analysis on how JPY could be a good idea to trade this week after the run up that all currencies did against it.
Fundamentals, Japan has had some good news on their books, we will see how the liquidity responses to this .
Tradeoftheweek
USDJPY: More weakness possible1) As anticipated earlier, the USD/JPY pair followed the direction of the Nikkei 225 and opened with a significant gap lower today's trading session.
2) The pair retraced at the 61.8% Fib level which aligns with a major horizontal resistance level.
3) Futures positioning supports a stronger JPY vs USD
4) USD Index weakened today in the direction of US 2y, 5y, and 10y yields
5) Safe-haven flows could further support the JPY (Our risk sentiment index shows a reading of 3/10, everything below 5 is risk-off).
USD/TRY: Yields, Resistance, and RSI Divergence Point Lower1) Potential double top forming on daily chart, near 6.00 round-number
2) US/TR 2-year yield differentials forming slight divergence
3) RSI forms a bearish divergence
4) Positioning and data support a stronger USD - possible headwind for the setup
5) Break above 6.00 invalidates the idea