The USDJPY bounce may have stalled at the 50% retracement as we are building as ascending wedge.
USDJPY is rebounding higher after finding support at the confluence of the 88.6% Fib of the August low to the October high and the 141.4% extension of the October low to the November high.
Sometimes the best trade is “no trade” and that is probably the case with the USDJPY currently.
The USDJPY is in a triangle pattern and today’s lows coincided with the trend line that has been established all of 2018 (blue line).
The US equity markets are trading heavy after a strong selloff, is there more selling to come?
As the equity markets continue to extend their gains into the fall season, we continue to look at what the implications will be on currencies, and what potential outcomes we may have in the current environment.
Global equities had been on a 9-year rally since 2009, with the bottom being at the peak of the 2008 Global Financial crisis. This rally has been so strong that many global indices have gone up in a straight line, registering gains up to 300% over that time period with volatility hitting historical lows.
Good day traders! Following Christmas and New Year holidays we have seen a new bout of dollar weakness across the board which may not be over yet based on recent price developments.