Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

The US dollar has recovered quite nicely against the Japanese yen during trading on Friday, to break back above the ¥105 level at the open in New York. That is a pretty significant turnaround, but at this point it still looks as if there is selling pressure facing the greenback against almost everything, and it is possible that this may have been a little bit of profit-taking. There were some lackluster Japanese economic numbers during the Asian session, but quite frankly the FX markets are paying attention to the Federal Reserve, nothing else.

USD/JPY Video 03.08.20

As long as the Federal Reserve is willing to flood the markets with US dollars, it is likely that the greenback will continue to lose value against most currencies, including the Japanese yen despite the fact that it is considered to be a safety currency. With all that being said, it is worth paying attention to this general area because the ¥105 level has a certain amount of psychological importance built into it and of course there is the longer-term triangle shape that we have been paying attention to for some time.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

With that in mind, I anticipate that we may get a short-term bounce, only to turn around and rolled right back over near the ¥106 level, maybe even ¥106.50 above. I do not have any interest in buying this pair, I think we are going to have a nice selling opportunity sometime next week as the market is certainly bearish of US dollars. We may have just gotten a little bit ahead of ourselves but that seems to be the case with the US dollar against other currencies such as the British pound and the Euro.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.