Extreme Highs Not Ordinary or Surprising

[ad_1]

The USD/JPY has climbed again and the value of the Forex pair is testing heights not seen since September of 1998.

Advertisement

The yen is a popular asset during turbulent times.

The USD/JPY is trading near a value of 136.580 as of this writing. The famed Forex pair is trading with a lot of volatility and spikes have been demonstrated. Trading the USD/JPY should be done by speculators who have experience; if people with a lack of historical knowledge want to trade the Japanese Yen they should use extreme risk management. In fact, speculators with a lot of experience should use extreme risk management too.

The USD/JPY did see some selling after the U.S Federal Reserve released its interest rate policy last week and a low of nearly 131.500 was seen on the 16th of June.  This lower short term realm did come about after the USD/JPY had hit a high of nearly 135.500 on the 14th of June. The USD/JPY not only has a proven track record of trending in a very clear manner, but it also has the capability to move with a lightning pace as financial institutions seek equilibrium.

When trading opened yesterday the USD/JPY was roaming around the 135.000 juncture, but upon suddenly bursting through the 135.500 vicinity, the pair developed serious price velocity upwards. A late night high in the USD/JPY yesterday flirted with the 136.750 level, while the USD/JPY has come off of this high it has not traversed much lower.

Traders may suspect and fear the USD/JPY cannot go much higher.  They may be tempted to sell the USD/JPY based on the notion that gravity will have to enter the market at some point and a bearish move will be ignited. However, timing the exact moment the USD/JPY is going to suddenly start to reverse and proceed downwards, breaking through support remains a nearly impossible task. In the meantime technical traders need to look at long term charts, correction – very long term charts, to gain a perspective regarding potential direction.

While it might seem hard to believe, the USD/JPY can trade higher.  In October of 1998 the USD/JPY was trading near the 139.000 juncture. And in July of 1999 the USD/JPY was trading near the 144.000 juncture. Current economic conditions globally are rather extraordinary, and the results of the USD/JPY have produced ratios financial institutions are not used too perhaps, but we have seen these numbers before.

Traders who can use risk management effectively may want to continue to wager on upside momentum. If the USD/JPY breaks above the 136.750 level and starts to challenge the 137.000 juncture and suddenly sustains power above this ratio, more surprises from the USD/JPY could develop upwards. Speculator need to use their risk management tactics wisely, this cannot be overstated. The USD/JPY will continue to produce volatile trading conditions.

USD/JPY Short-Term Outlook

Current Resistance: 136.710

Current Support: 136.050

High Target: 138.780

Low Target: 134.930

USD/JPY

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using EkamFX services, please acknowledge all of the risks associated with trading. The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor. The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 EkamFX.com. All Rights Reserved.