FLIGHT TO QUALITY SAFE-HAVEN #CURRENCIES as #VOLATILTY Remains
After the Consumer Price Index (CPI) released a rise of 0.5%. Stocks opened lower and is currently having a roller coaster ride as a TUG of WAR between market players are felt across the board. But the general focus we've had is on the currency particularly the #USDJPY as described on the chart below. In short a 'HOT Red Letter day' for the USD index just in time for Valentine's day, so to speak!
After the Consumer Price Index (CPI) released a rise of 0.5%. Stocks opened lower and is currently having a roller coaster ride as a TUG of WAR between market players are felt across the board. But the general focus we've had is on the currency particularly the #USDJPY as described on the chart below. In short a 'HOT Red Letter day' for the USD index just in time for Valentine's day, so to speak!
As the USD tries to form a base to recover but likewise met with market investors flight to safe haven currencies including the #USDCHF doing the same with higher volumes adding to the momentum of the trades even up to this writing. Likewise, even the weakness of the Philippine Peso #USDPHP weakening to its lowest value above 52.00 is a daunting shock for the #YEN to PHP or #JPYPHP exchange rate as seen nearing the 48.00-50.00 range.
USDJPY as of Feb 14, 2018
Rapid Price Action as Japanese #YEN racing towards an important 'Step-Down' key price levels to challenge the 105.50. Currently trading at 107.09 correction from a knee jerk whipsaw reaction with the USD session decline after initiating a high at 90.12.
Not surprising the #USD #DXY marks below 88.40 basis point while #USDJPY hits its low at 105.52 initial objective has now been validated from our price call last Feb 14, 2018. Where a session bounce could well be expected for the USD which have been in search of a reasonable catalyst for a probable lift but not necessarily for the USDJPY.
ReplyDeleteThis is the 2nd retest for the USD below the 88.40 level apparently coinciding with the USDJPY at 105.52. Some fresh speculative trade will emerge on the USD as US equities are getting accustomed to the inflation figures and interest hikes. Meanwhile, both the VIX and US Bonds / Treasury yields have given a positive signal justifying a lift for the major indices to stay in a positive tone.
Meanwhile, USDPHP has indeed pushed through the 52.00 figure trading at 52.20 swinging in both directions for the session with a range of 52.39 high and a low at 52.01 respectively. Thus the 'CONFLUENCE' effects between the USDJPY & USDPHP & JPYPHP Triple Cross as MegaTrade101 defines the strategy comes to no surprise either.
ReplyDeleteThe JPYPHP Cross is currently at 0.4909 equivalent to PHP49.09 guiding rate for the foreign exchange rate with a high at 0.4918 and a low at 0.4904 as of now. A testing ground for new record highs is not discounted at this time.
The strategy for the JPYPHP which is not traded in the regular retail FX market. But rather a sound advice which we at MegaTrade101 made mention for OFW in Japan to take notice for their own savings and investment ideas which they themselves can do. This goes the same with the Swiss Franc cross with the Philippine Peso.
Sounds Good Right! Especially for families receiving hard earned funds from OFW in both countries. This is how you know how money can work for you when done right in the first place.
#Technical Outlook for #Nikkei225 points to a 'Death Cross'
ReplyDeleteHow reliable is it for an #investor / #trader to take action based on this premise.
NOTE: The repercussion of this outlook would bring about a chain reaction on the Japanese #Yen and its #correlation with the #USD would take shape as a result. However, it is only 'after the fact' when prices do react on these technical signal.
Strategic Summary of Yen Related Trades
ReplyDeleteUSDJPY hits 104.64 low that triggered an equivalent drop on the NK225 at 20559, likewise setting NKDM2018 Futures at 20195; wide price differential and the Yen Futures at 0.009600 inverse price relation with a premium over spot.
A complex trade strategy which we are accustomed to that magnifies the market potential when the trend signal was first defined last Feb 14 from our market outlook. And with the directional move confirmed when it reached 105.50 and now have broken below these levels. Thus VALIDATING our price and market call at the close of March 23, 2018.
Investors trading along with MegaTrade101 understands the real importance of our 'SEQUENCE of TRADES' where strategies are commonly combined with relative markets that capitalizes on what has already been defined as a reinforced trend when it occurs.
ReplyDeleteAnd YEN related trades have been focused on especially respecting the 'Bearish' market sentiments that weighs heavily on the markets today.