Euro / Japanese YenShort
Eur/Jpy(Sell,Short)
Hello everyone :)
After we saw a big sell-off, the British Pound and Australian Dollar which were big gainer on the market for the whole of February, and Japanese Jen was the worst performed currency,
is there any possibility for making Japanese Jen a very good performed currency?
From a fundamental point of view, Japanese Jen was the worst performed currency because investors gave up investing in save haven currency, and they started to invest in risk assets such as British Pound, etc. British Pound and Australian Dollar were best-performed currency because England made decrease of infected and they are the second country in the world which they vaccinated their population. Also WHO reported a big decrease in infection in the whole world which is also not a good sign to invest in Japanese Jen. Probably you are asking yourself, why I am so sure about investing in Japanese Jen. Well if you are watching an infection rate Germany and Japan are in a big decrease momentum but the big difference is in that Germany will probably extend their "lockdown" and on the second hand, Japan started to vaccinated their population which they had a problem a month ago about a whole plan. In the beginning, they didn't know when the whole process would start, who is first in a population that will be vaccinated, and who will be their main supplier of the vaccine. As I mention in the post AUD/JPY(natural) they made an arrangement with BioNTech about the vaccine. In my opinion that is the main reason why is, EUR/JPY was a big uptrend at the moment because the Japanese government needed to exchange a lot of Japanese Jen to convert to Euro to pay BioNTech for the vaccine. But there is one problem. As well Europa and Japan are second-biggest trading partners of import/export goods and at the moment Euro export price against Japanese Jen is too expensive at the moment and we can see a good sell-off. I am watching this pair a lot and when is some period of price made a "52-week high or low" or etc. we often saw a good buy or sell off(depends on where in the market at the moment).
From a technical point of view, we can see that price at the moment at the big ascending channel and the small descending channel which we can also interpret as a bearish flag, but because of fundamentals and making at the moment LL, LH, and breaking previous low, which we can read that maybe sentiment is changed. I prefer to see this pair in a sell-off mood. We can see above a price a sell zone and a resistance line and my personal enter will be a start making a new LL, LH and there I see my potential entry-level. Both EMA´s are above the price which is a good indicator that the price will dropdown. TP will be at the nearest support line and SL can be over the previous high or above the resistance line and our sell zone.
WHAT DO YOU THINK ABOUT THIS SETUP?
Please let me know in the comment section!
THANKS FOR READING!
If you have some different opinions please let me know and if you like this please hit that like button and give me support, I will appreciate every support.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.
After we saw a big sell-off, the British Pound and Australian Dollar which were big gainer on the market for the whole of February, and Japanese Jen was the worst performed currency,
is there any possibility for making Japanese Jen a very good performed currency?
From a fundamental point of view, Japanese Jen was the worst performed currency because investors gave up investing in save haven currency, and they started to invest in risk assets such as British Pound, etc. British Pound and Australian Dollar were best-performed currency because England made decrease of infected and they are the second country in the world which they vaccinated their population. Also WHO reported a big decrease in infection in the whole world which is also not a good sign to invest in Japanese Jen. Probably you are asking yourself, why I am so sure about investing in Japanese Jen. Well if you are watching an infection rate Germany and Japan are in a big decrease momentum but the big difference is in that Germany will probably extend their "lockdown" and on the second hand, Japan started to vaccinated their population which they had a problem a month ago about a whole plan. In the beginning, they didn't know when the whole process would start, who is first in a population that will be vaccinated, and who will be their main supplier of the vaccine. As I mention in the post AUD/JPY(natural) they made an arrangement with BioNTech about the vaccine. In my opinion that is the main reason why is, EUR/JPY was a big uptrend at the moment because the Japanese government needed to exchange a lot of Japanese Jen to convert to Euro to pay BioNTech for the vaccine. But there is one problem. As well Europa and Japan are second-biggest trading partners of import/export goods and at the moment Euro export price against Japanese Jen is too expensive at the moment and we can see a good sell-off. I am watching this pair a lot and when is some period of price made a "52-week high or low" or etc. we often saw a good buy or sell off(depends on where in the market at the moment).
From a technical point of view, we can see that price at the moment at the big ascending channel and the small descending channel which we can also interpret as a bearish flag, but because of fundamentals and making at the moment LL, LH, and breaking previous low, which we can read that maybe sentiment is changed. I prefer to see this pair in a sell-off mood. We can see above a price a sell zone and a resistance line and my personal enter will be a start making a new LL, LH and there I see my potential entry-level. Both EMA´s are above the price which is a good indicator that the price will dropdown. TP will be at the nearest support line and SL can be over the previous high or above the resistance line and our sell zone.
WHAT DO YOU THINK ABOUT THIS SETUP?
Please let me know in the comment section!
THANKS FOR READING!
If you have some different opinions please let me know and if you like this please hit that like button and give me support, I will appreciate every support.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.
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