Risk on Trade See the Yen Tumble

The risk on trade has flourished Friday in the currency markets as the appetite has been expressed with the yen tumbling as its haven premium is unwound. The USD/JPY has rallied into eight-day high territory, above 120.80, which is a gain of nearly 1.4% from Thursday’s low. Other yen crosses are also up. The moves come with European stock markets rallying strongly today. The dollar index is at five-week highs on Yellen’s signal that a rate hike is still a possibility before year end.

Japanese inflation data revealed the expected dip back into deflation territory, with core CPI falling to -0.1% y/y, which is the first negative print in two-and-a-half years. Stock markets in Asia have been mixed, and most Asian and commodity currencies have been steady.

The USD/JPY currency pair pushed above trend line resistance near 120.40, and is poised to test the range highs at 121.20. Support on the currency pair is seen near the 10-day moving average at 120.33. Momentum is positive with the MACD printing in positive territory with an upward sloping trajectory.

The post Risk on Trade See the Yen Tumble appeared first on Forex Circles.

Source:: Risk on Trade See the Yen Tumble