Can the USD/JPY Test 109?
Rowan Crosby • 1 min read
Last week the Yen experienced a degree of strength after the North Korean saga, drove money into the safe-haven currencies.
Yesterday we saw what appears to be a terror threat in Barcelona, where 13 pedestrians got run down. When these types of events occur, markets often go into sentiment mode. They don’t really know what fair value looks like and the are reactive. When that happens I like to trade with momentum.
Can We Test 109?
While markets appear to have opened relatively quiet, even given the overnight news, there is the potential for more money to flow back into the Yen.
Like we saw last week it can sometimes take a day or two to absorb news and then react to it. With that in mind I will still be looking for the USD/JPY to break down further and test 109. These type of levels play out well as trades.
We might need to wait for European traders to enter for more momentum as the open has been muted to date.