USD/JPY BULLS FIRMLY IN CONTROL, BRITISH POUND HAMMERED

Photo credit: MT4 TERMINAL

It’s been a quiet week on the market so far with many investors going through lines of US federal reserve chairwoman Janet Yellen statement last week. Many were disappointed with the tone as she placed a caveat on March rate hikes saying March rate hikes will happen if the data support it.

The USD/JPY fell from 114.650 to 113.600 region but that was a minor pull back from the excitement the market placed on the rate hike clues.

The USD/JPY recovery is under way with trade balance and treasury bonds yields supporting a mild bullish sentiment across all USD pairs. The dollar index which measures the strength of the dollar against it six major pairs rose to a daily high of 101.91 from a previous fall from 102.20 last week. 

On the technical front, the trend is still bullish for the USD/JPY pair. A control of the 114 region will be safe place as more traders envisage the takeover of 115. However, there are more sellers and more resistance before 115 regions can be seen. For now, bulls are in control until they lose 111 regions.

The worse performing currency in the market for almost three weeks now has been the British Pound. The GBP/JPY pair has been hammered for weeks. The pair gave up on the 140 region last week as it was dumped deep into 138 today with next stop looking to be 132 medium term view.

The British economy is beginning to feel the wobble of Briexit as Prime Minister, Theresa  May puts finishing touches to finally trigger article 50. Traders and investors are looking at March 31^st to be the official day. When triggered we could see a deep fall back into the 126 regions within a month.

Great opportunity lies ahead for GBP/JPY bears to pound the pound once again.

DISCLAIMER: THIS ARTICLE IS BY NO MEANS AN INVESTMENT ADVISE. THERE ARE GREAT OPPORTUNITIES IN FOREX TRADING AS WELL AS RISKS. THIS PIECE AND ALL ARTICLES ON THIS BLOG ARE FOR INFORMATION PURPOSE.