Signs of Shifting Sentiment for Yen Short Term

However, the Yen has begun to weaken this morning as sentiment has shown signs of shifting.

Yen Weakening Slight this Morning

Welcomed stability has emerged in nervous Asian markets this morning, and Japan’s Nikkei Index has actually produced gains. The Yen has come off its strongest ratio and is above the 105.00 level versus the U.S Dollar.

USD/JPY 4H Chart
USD/JPY 4H Chart

The Japanese currency has proven quite strong in the mid-term as risk-averse investors have sold the U.S Dollar consistently against the Yen. Support appears to be the 104.55 mark, while resistance near term may be around 105.80.

Worst of Political Storm over in Japan?

The political scandal surrounding Prime Minister Abe has not disappeared, but traders may have digested the worst part of the storm. And if Asia develops more risk appetite, the Yen may begin to soften and a reversal towards weaker values may increase momentum.

USD/JPY Daily Chart
USD/JPY Daily Chart

Risk management is always necessary with the Yen and patience is an important component for success. And the Yen is sure to produce a test of its range in the coming days.

In the short term, we believe the Yen could be negative. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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Yaron Mazor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology and education. Ten years ago, Yaron sold all of his businesses and became a trader. Yaron started an education provider that taught thousands of people worldwide how to trade. Since then, he has traded every single day across every imaginable financial instrument Organic Trading System (OTS) is an unprecedented, new paradigm of trading technique, developed by Yaron Mazor. The trading system utilizes a combination of essential resources of market data (Fundamental, market participant sentiment and the basic concepts of trends), which are harmonically coordinated, in order to enable a relatively fast, simple and easy way to decide which side of the market to be trading from – the Buy side or the Sell side.