Yen Is Ready To Drop AgainAt the beginning of December, we could have few hot topics for forex traders. Trade Wars, all time highs on stocks or Brexit. Quite surprisingly, our attention shifts towards yen, which is quietly weakening across the globe.
First pair is the USDJPY, where on Wednesday, the pair broke two ultra-important mid-term resistances. First one is the horizontal one around 109.3, which is with us since May and the second one the dynamic one (orange), which can be also described as a neckline of the iH&S formation. As long as we stay above those two lines, the sentiment is definitely positive.
Second pair is the NZDJPY, where the last few days were really great for the buyers. Weakness of the JPY is just the part of the equation. Strength of the New Zealand currency is an additional bullish factor here. Apart from breaking a crucial horizontal resistance, the price broke also blue down trendline. NZDJPY closing a day above that resistance will be a legitimate buy signal.
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Last one is the GBPJPY, where the price is trying to escape from the rectangle sideways trend, which started almost 7 weeks ago. Once the price will close a day above the upper orange line, we will get a proper buy signal.
This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory