Forex Today: Japanese Yen Bounces Back

The Japanese Yen recovers strongly to reach a touching distance of its multi-month highs against several major currencies.

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The yen is a popular asset during turbulent times.

   

  1. After a day in which the Japanese Yen quickly lost more than 2% of its value against the US Dollar in a strong counter-trend spike, the Yen then turned around and regained almost all its losses and is now moving back in line with its long-term bullish trend.
  2. In the Forex market, the Yen is clearly the strongest major currency, while the Australian Dollar is the weakestThe USD/JPY currency pair is again moving in trend not far from its long-term lows so will be attractive to trend traders in the short direction.
  3. The long-term bullish trend in precious metals such as Gold and Silver as well as the Euro in the Forex market, remains valid. These assets are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days. The EUR/USD currency pair briefly made a new 9-month high yesterday above $1.0887.
  4. The US 10-Year Treasury Yield has fallen strongly to a new 7-month low at 3.321% and will now be attractive to trend traders in the short direction.
  5. British CPI (inflation) data released yesterday came in as expected, showing a small decline in the annualized rate from to 10.7% to 10.5%.
  6. US Retail Sales and PPI data released yesterday was worse than expected, making the short-term economic outlook in the USA a little gloomier.
  7. The Prime Minister of New Zealand announced today she will be resigning instead of leading her party into the forthcoming general election.
  8. Daily confirmed new global coronavirus cases decreased last week for the fourth consecutive week, but there are serious doubts over the veracity of China’s official statistics, which almost certainly dramatically understate new coronavirus cases.
  9. Total confirmed new coronavirus cases worldwide stand at over 672.2 million with an average case fatality rate of 1.00%. 
  10. The rate of new coronavirus infections appears to now be significantly increasing only in China.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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