Weaker Yen a Possibility in Short Term

The Nikkei Index has recovered ground this morning, and the prospect of a weaker Yen is intriguing short term.

Rapid Swings but Yen Quiet

Global equity markets continue to produce rapid swings, and the Nikkei Index has not been immune from the turmoil. However, Japanese equities responded with a positive day of trading today.

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

The Yen finds itself in an intriguing position. It is near 109.50 against the U.S Dollar. The Japanese currency has been one of the few major currencies not to lose a large amount of ground to the U.S Dollar since late last week.

Resistance an Alluring Prospect for Yen

While support looks to be around 108.75 for the Yen, it is resistance which is generating our interest. The Bank of Japan may have to become more aggressive long term, but for the time being, they remain rather passive. Resistance around 110.50 looks like a potential target for the Yen against the U.S Dollar.

USD/JPY Daily Chart
USD/JPY Daily Chart

The combination of a dovish Bank of Japan and the potential for the Nikkei Index to rebound near term as the global markets stabilize, make buying the U.S Dollar versus the Yen an alluring prospect.

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

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

Published by

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.