Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis
USD/JPY weekly chart, August 19, 2019

The US dollar has gone back and forth during the week, reaching as low as the ¥105 level underneath, and the ¥107 level above. At this point, the market continues to be very choppy and it quite frankly should be. After all, there’s a lot of risk out there that traders are trying to get away from, and as a result it’s likely that we will continue to see the Japanese yen favored by currency trader so I fully anticipate that we fade this rally. It’s not that the US dollar is going to struggle, it’s just going to struggle against the Japanese yen.

USD/JPY Video 19.08.19

If we did break above the ¥107 level, it would be a sign of positive momentum in risk appetite, and therefore it’s likely that we could see a turnaround in the stock market. In the short term, I think it’s very likely that the market probably reaches back down towards the ¥105 level as quite frankly there’s just so much out there that could go wrong. At this point in time we are essentially in a bit of a range, so I think likely trading is going to be go back and forth and choppy to say the least. I still favor the downside though, because quite frankly there are far too many negative things out there just waiting to happen. The Japanese yen has been rallying against most other currencies so if you are looking for a little bit more Alpha and your trade, perhaps she will short the AUD/JPY pair, or maybe even the NZD/JPY pair.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Please let us know what you think in the comments below

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