Another Indicator Adding Fuel to the USD/JPY Fire! Buy the Dips - Forex News by FX Leaders

Another Indicator Adding Fuel to the USD/JPY Fire! Buy the Dips

Posted Tuesday, May 9, 2017 by
Skerdian Meta • 1 min read

Early this morning we posted an update on our trading feed where we presented a trade idea in USD/JPY. To recap, I was thinking of buying this pair on a retrace to the 1.10 level. Of course, that wasn´t going to take place today since this pair was above 113 when I was writing.

But now it doesn´t look like we will see 110 this week either. Instead of making a long overdue pullback, the USD/JPY rallied overnight to 113.80.

One of the biggest reasons for this recent surge is the market sentiment. The market is feeling adventurous and likes the risk, hence the decline in safe haven currencies such as the Yen and the Swiss franc.

Another reason for this morning's surge in USD/JPY is Japan's wages. They fell by 0.5%, which is the fastest decline in two years.

But on the other hand, the commodity currencies are falling hard as well. Besides that, Gold and Oil have been declining too. Risk assets are declining together with safe haven instruments (JPY, CHF, Gold), so what do you make of that?

Though we don't have an answer, we only need to make pips here and there, whenever we spot good trading opportunities. The best thing to do right now is to buy dips in USD/JPY and EUR/CHF, while selling AUD/USD whenever it jumps enough to lure the sellers.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of