Japanese Yen higher amid Forex “Flash Crash”

US Dollar dwindled at resistance, JPY higher amid Forex “Flash Crash”

The Japanese Yen, American Dollar and Canadian Dollar trending points

  • Followed by a major “Flash Crash” in the global currency market, the JPY had breached below 108 during the Asia Pacific trading sessions.
  • The American Dollar failed to break above its key resistance at 96, while it was again dragged downwards in to the 95.70s, amid a raise in the US weekly jobless claims
  • The Canadian dollar and Norwegian Krona had been up, chiefly reignited by the boost achieved from a higher oil price, while Saudi posted their biggest output drop since 2016, as Canada has been the home ground of world’s biggest oil refineries since as early as 2001.

The Japanese Yen looked to breach 105 in a hurry

It was a year ago, while a bunch of analysts had predicted a Japanese Yen move below 100 in 2019. However, after a turbulent 2018, which posted the worst financial data since the year of great financial depression, the Japanese Yen had been showing mystic magics, in the past couple of days, while it achieved a radical upswing, falling from 110.50 to 107.10 against USD. Being globally called as a “Flash Crash” in the Forex market, the USD/JPY pair did fall below 104.92 briefly during the Asia Pacific trading sessions on Thursday, the 3rdof January, 2019, which may occur again in a near-term, although a much gradual downtrend is likely to take place.

USD/JPY daily price chart

USD/JPY daily price chart

The USD failed to breach key resistance at 96, amid gloomier economic environment

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Amid dozens of unnerving speculations and facts regarding the imminent slowdown of global economy had dragged the American Dollar downwards in to initial support level at 95.60. While preparing this report, the 3rdof January, 2019, Thursday, the American Dollar was residing at 95.72, falling against all of the major currencies including the much-softened Canadian Dollar.

USD daily price chart

USD daily price chart

Canadian dollar upbeat, amid OPEC output cut

Since the oil price and CAD had been synchronous from as early as late 1990s, the CAD had shown significant improvement against USD in the Asia Pacific trading hours, while it was 0.4% up. During the preparation of this report, the USD/CAD pair had breached its key resistance at 1.3500, and the CAD had again been resurfaced just below 1.3480.

USD/CAD daily price chart

USD/CAD daily price chart

USD/NOK daily price chart

USD/NOK daily price chart

Bottom Line

The American Dollar is unlikely to gain a momentum amid wobbling global economies and a fall below 95.60 appears to be imminent, amid waning chance of an interest rate hike in 2019.

The Japanese Yen looked promising and the financial forecasts made on 2018, had met with market expectations, much sooner than anticipated, as a breach of Japanese Yen below 105 regions, followed by the major Flash Crash, appears to be on sight.

The CAD and Euro, alongside North-European currencies like NOK and SEK, might secure further gains, amid an upbeat oil price, which seems to be highly supported by the agreed output cut by OPEC and non-OPEC nations and the crude market momentum seems to be hanging in a substantial sense of balance, despite record reserve in the US oil inventory.

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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]


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