- Our Clients
- Futures Platforms
- Trading Systems
Session close: Settled at .92375, down 90 ticks
Fundamentals: The Yen’s carry trade got hammered from all angles today. We pointed to rising U.S Treasury yields midweek last week as holding back the bounce in the Yen. However, that rise in yields has continued at a sharp pace and the 10-year U.S Treasury has now stolen all headlines as it tests the 3% benchmark. The rise in U.S yields, which has drastically outpaced that in Japan and other regions, is encouraging buying and short-covering in the Dollar. Manufacturing PMI from Japan missed last night and did not help either. Additionally, BoJ Governor Kuroda said they are a long way from 2% inflation and that policy must remain accommodative. The Bank of Japan meets Thursday evening, U.S hours.
Technicals: On our last FX Rundown, we said, “the failure to get out above major three-star resistance and then the quick retreat does give the bears a clear edge.” This edge has turned into much more now that the market sliced through major three-star support at .9310-.9342 like a knife through warm butter. We see some support near the .9200 area though this is hard to pinpoint; a lot of time and volume was spent their late January and early February. Major three-star support comes in at the 200-day moving average and long-term retracement at .9161-.9163. Only a move back above .9310-.9342 will neutralize this extreme weakness.
Resistance: .9310-.9342***, .9420-.9429***, .9465*, .9500-.9512**, .96145***, .9729***
Support: .9200**, .9161-.9163***, .9073**
For more information please contact DAW Trading at firstname.lastname@example.org or at 877-329-0006 and visit us at https://dawtradingdiv.com/brokers-edge/
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.