Yen far from Overbought

by Ashraf Laidi
Dec 20, 2018 18:43

Although USDJPY hit a 3-month low at 110.96, reaching its 100-WEEK MA for the 1st time in 3 months and its 200-DAY MA for the 1st time in 4 months, YEN strength is far from excessive. 1. Positioning. As the CFTC's speculative data on JPY positioning vs USD suggests, JPY remains net short vs USD, but has broken a 6-month trend line resistance, suggesting further reduction in JPY shorts. 2. JPY Trade-Weighted Index from the Bank of Japan is a truer reflection of yen value, rather than USDJPY, which is starting to reflect reduced USD positioning. JPY TWI chart indicates upside breakout ahead (technicals) and 110 is the obligatory next  stop until the next risk-relief rally. After 1 failed attempted, our Premium short in USDJPY opened at 112.70 is nearing the target. Careful near 110.70 for now.   

Click To Enlarge
Click To Enlarge
Yen far from Overbought - Jpy Twi Dec 20 2018 (Chart 1)

 

More Hot-Charts

  • ECB Scenarios Chart

    ECB Scenarios

    Jul 26, 2018 11:51 | by Ashraf Laidi
    The ECB decision is at 1145 GMT (12:45 London), but it's a foregone conclusion that interest rates won't change. Instead, focus on messaging and press conference 45 mins later.
  • Rare Quarterly Dow Doji

    Mar 20, 2018 11:02 | by Ashraf Laidi
    The quarterly candle on the Dow Jones Industrials Average shows a rare long-legged doji, one of the most striking reversal signs in candlestick analysis. Full Analysis..
Hot-Chart Archives
Comments (Showing latest 0 of 0) View All Comments