Flash Crash on the JPY. Golden start of the 2019?

Tomasz Wiśniewski

The beginning of the year is definitely super interesting! Yesterday we had some nice movements on the USD and Thursday brought us a flash crash on Yen. The Japanese currency was not the only one affected. AUD and NZD also witnessed volatile movements. The main reason for that is that the market was very shallow. Low liquidity can be a huge problem sometimes.

USDJPY dropped like a rock but we cannot say that it was unexpected. On USDJPY, the sell signal was present for a long time and was triggered by the bearish breakout from the symmetric triangle pattern and the breakout of the horizontal support on the 111.5. The negative sentiment is definitely feeling comfortable here.

Last few weeks for Gold are awesome. In this piece, I would like to show You one interesting thing. For the past 6 years, the beginnings of the year are bullish. History likes to repeat itself so we are awaiting a positive start of 2019 too.

The last one is the EURUSD, where yesterday we got a strong rejection of a dual (horizontal and dynamic) resistance. The drop paused on the mid-term up trendline but in my opinion, the lower black line should be eventually broken.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

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