Brent: Future is Still Sunny
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
USD/JPY: changing platforms
Information is not investment advice
Seasons
After devastating March and humiliating April, May’s recovery brought hopes, positivism, and optimism to the markets. We can see that the USD has been gaining value against the safe-haven JPY almost the entire month. There was a pause at stage 2 after a shaky upswing at stage 1, then stage 3 followed with a spectacular peak. That was observed in the stock market as well. But that, altogether, was just the first awakening after a lethargic March and April. Just like spring after winter. However, unlike natural seasons, the market mood is now in a retrace after the recovery hopes brought it up from the ruining silence. Stage 4 was an introduction to that retrace, which undid almost all gains of May. The good news is, it landed higher than May lows – that gives a hint that the recovery is indeed underway, but it will not be a straight line upwards. Currently, we are in stage 5 – a sideways movement that changes baseline levels from time to time. Let’s see it closer.
Channels
From June 11 till June 18, the USD has been trading within channel 1 between 107.20 and 107.50 against the JPY. Then, it moved downwards to go sideways within channel 2 between 106.75 and 107.00 until this Tuesday. Currently, it is in the middle zone between those two channels suggesting a potential for a new sideways channel 3. Although it doesn’t look like a single shot out of channel 2, we still need to time-confirm this shift. In any case, it is a good sign: it means there are lighter moods among investors who look to trade more risk-on compared to the previous week. If the fundamental balance stays neutral as it is now, we are likely to see USD/JPY move within this channel. If the information background – which is more unlikely – becomes more positive, we will see USD/JPY move into the zone of channel 1. Set your trades accordingly and watch the news.
Similar
How will ECB Drive EUR?
What will happen? The European Central Bank will present the monetary policy statement on June 22…
USD/CAD Reversal Pattern
After a notable rally all the way to 1.28, USD/CAD dropped back to 1.2730 yesterday, confirming our outlook mentioned a few days ago about the need for a downside retracement before the upside trend resumes.
Popular
Brent: Future is Still Sunny
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
New Trend in Tech Stocks?
When Twitter Inc. and Snap Inc. posted quarterly revenue that blew past analysts’ expectations, the results bumped up the shares of the two of their larger rivals: Facebook Inc. and Alphabet Inc.
EUR/USD Holding After ECB Decision
EUR/USD managed to rise for a very short period of time right after the ECB decision to as high as 1.1798 before declining and giving away its entire gains.
Choose your payment system
