Over the last few months, there has been a narrative that many currencies around the world have been bouncing to the upside because of the weakness in the Dollar, and that may be changing in the short term looking at the Japanese Yen futures. Over the last 4 trading days, the contract has dropped significantly falling below the 50-day moving average and the 200-day moving average, and the 200-day moving average has acted as a “floor” in the market where buyers have stepped in since it crossed over it in February. The market also broke below a trendline that goes back to January and has drawn a lot of attention from traders across the globe.
There were a few reasons why this market may have broken to the downside, and through significant levels, and the first one has been the general strength in the Dollar over the past few days which has been boosted by rising treasury yields in the U.S. Outside of Dollar strength, there has been a political shift in Japanese leadership where it is expected that there will be more aggressive government spending which would hurt the currency market relative to the Dollar. Although the market has seen the drop significantly lower, the relative strength on a daily basis remains in neutral territory and is trading well above the low for the year, so traders will be keeping an eye for continued selling pressure if strength in the Dollar continues.
If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*CME Group futures are not suitable for all investors and involve the risk of loss. Copyright © 2023 CME Group Inc.
**All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
There were a few reasons why this market may have broken to the downside, and through significant levels, and the first one has been the general strength in the Dollar over the past few days which has been boosted by rising treasury yields in the U.S. Outside of Dollar strength, there has been a political shift in Japanese leadership where it is expected that there will be more aggressive government spending which would hurt the currency market relative to the Dollar. Although the market has seen the drop significantly lower, the relative strength on a daily basis remains in neutral territory and is trading well above the low for the year, so traders will be keeping an eye for continued selling pressure if strength in the Dollar continues.
If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*CME Group futures are not suitable for all investors and involve the risk of loss. Copyright © 2023 CME Group Inc.
**All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
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Further details of CME Group's regulatory status and full disclaimer of liability in accordance with applicable law are available here: cmegroup.com/disclaimer.html
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.