My picks: Flat JPY
Expertise: Global Macro, Classic Technical Analysis
Average Time Frame of Trades: 1 week - 6 months
Despite abysmal fundamentals, the trade-weighted Yen Index has broke above resistance at a falling trend line established from the high in January. It seems the Japanese Yen’s relationship with risky assets is strengthening once more and, given expectations of a downward reversal in global equities, the currency could be in for an upswing. The disconnect between underlying fundamentals and the current forces driving price action is unsettling, and I will remain on the sidelines for the time being.
For complete analysis of all the major currency pairs, please see my latest weekly technical outlook report.
