- Japanese Yen seems to be out of risk, as S&P 500 and global stock sell-off continuing.
- Looking past BoJ stat, JPY fundamental forecast remains bullish.
- Upcoming week may offer Yen volatility, yet more gains on the store.
Japanese Yen experiencing a floral run, as Asian stocks suffering
Japanese Yen is experiencing anti-risk market trends over this current week and it is appreciated against most of its counterparts including EUR and GBP. As a matter of fact, Japanese Yen should be seen as a lucrative one, as the upcoming week could unfold further gains for Japanese Yen. Right now, when the report is being written, (26.10.2018, GMT. 7AM), it is early eve in Asian trading sessions and USD/JPY is staying just above 112 region, breaking below its support at 112.76.
USD/JPY daily chart
Japanese Yen Technical Analysis
While looking towards the Japanese Yen, we are watching that the USD/JPY is lowering cautiously, as the wall street and Nikkei 225 are suffering grave damage. Moreover, both currencies are gaining a boost from the souring market mood. It also appears that the upcoming week will yield more gains for JPY as well as USD, as the JPY CPI improves.
While taking consideration of the next week ahead, the bigger fundamental picture shows grooves and hills in the track, though a uptrend momentum will likely to be preserved. While EUR, GBP, AUD, NZD and CNH are still seriously vulnerable due to geopolitical tensions, trade wars and political uncertainty, further USD and Yen gains are likely to come.
To the bottom lines
As there will be little or no chance to Bank of Japan monetary policy and the inflation rate is remaining well below the target range, it is quite obvious that Yen is going to get benefitted from the recent global scale sell-off and world-wide political drama. The future planning could include a buying option for Japanese Yen traders, though market volatility should be eyed carefully.
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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.]