The Japanese yen is weakening again, bringing the USD/JPY currency pair close to its recent high, a level at which markets expect the Bank of Japan to intervene.
➡️ The Japanese yen weakened further, pushing the USD/JPY currency pair higher and close to retesting the recently reached record high just below ¥152. Japanese financial officials will likely threaten intervention if ¥152 is retested, but it seems likely that the price will not fall much in the meantime, offering traders potential opportunities to operate in that range. Trend traders they will still be interested in being long the USD/JPY exchange rate and being short the Japanese yen in general. Analysts speculate that Bank of Japan intervention, if it occurs, will likely temporarily push the price down to around ¥147/¥147.50.
➡️ In the Forex market , the US dollar strengthened after US ISM manufacturing PMI data released yesterday turned out to be stronger than expected. Since the Tokyo open, the Australian dollar has been the strongest major currency, while the Swiss franc has been the weakest.
➡️ They it closed last week at a record high, and opened higher yesterday, before closing the day at a record high. Gold tends to be positively correlated with risky assets, many of which have rallied to new highs. Trend traders will want to stay Long here.
➡️ Crude oil looks bullish , with WTI and Brent reaching new maximum prices of the last 5 months. The bullish trend is strengthened by improving Chinese economic data which raises expectations of stronger Chinese demand for the commodity.
➡️ The minor raw material, cocoa, continues to look very bullish. The value of superfood commodities has nearly tripled in the last year alone, and many analysts suggest that supply-side shortages are at least partly responsible for the meteoric rise. Every year there is more and more demand for cocoa as it is coveted as a key ingredient for chocolate but also as a superfood in its own right. Trend traders will be interested in the long side, although with such high volatility and net gains, it could collapse at any moment, so trend traders need to be careful about using one stop loss disciplined if they go long. In addition to cocoa futures, there are cocoa ETNs available that may be more suitable for trader and retail investors.
➡️ Some impactful data will be released later today:
- German preliminary CPI
- JOLTS Jobs in USA
Credit by DailyForex.com