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| Chart Overlay JPY, DXY, J-TEF |
Barely two weeks into the year end, the #USDJPY marked a 118.66 session high between transition of Asia & European towards the US markets. Still Aligned with #USD strength marked on our target levels above 102.20 for the SPOT - DXY with a high @102.98 bp extension came through with flying colors.
With the Currency hedge J-ETF registered a high @28.86 levels marking an alignment of price action on the way up with an assumption that sustainable volumes would already be expected an increase at this time. Meanwhile the Nikkei 225 new high @19436, is considered to be the 8th consecutive high for the past three months. Which we already stated would have a similar price action movement along with the #DOW's directional trend.
It has been an effective strategy that started from a USDJPY position @105.50 mark in the market which was rolled over above the 110.00 when the DXY held above 95.05/10 and continued above the 98.80 breaking the resistance level coming from a strong price pullback dated Nov 11, 2016. This led to the continued appreciation of the Nikkei 225 to its present levels.
The USD has moved higher in the last 14 years and is making US Equity stocks more expensive as the Federal Reserve indicated a move to higher rates faster than most analyst have thought. Yet, this move is not too surprising for us except for the velocity of price swings moving higher at an accelerated pace. Pullbacks may also be expected and not to be discounted.
ReplyDeleteBut this move would dent the Foreign exchange rates of the USD counterparts that has been deteriorating for sometime. Particularly the Japanese #Yen and the #EURO. The declining value equivalent to PHP will be felt by European and Asian OFW working in Europe and in Japan specifically.
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