By Forex Signs, Inc.
The Japanese yen is looking very optimistic today as against euro most likely due to the hiking of interest rates in China. China’s choice to hoist interest rates turned out to be in favor of Japan’s economy. The Nikkei-225 index of Japan gained 0.75 percent in Monday’s trading session. Further, Japan’s production rises, suggesting that economic recovery in their nation is intact. The increase of the yen may be harmful to their economy as the export industry suffers but the movement is unstoppable as Japan indicates a strong economic upturn.
However, the posted decrease in Consumer Prices might affect the trade. A fall of 0.5 percent is recorded in November, its 21st straight monthly drop. A deflationary pressure is weighing now on the economy. This data may possibly affect the trade a bit.
In conclusion, despite the pessimism of the aforementioned news, the Japanese yen may still look forward to a good trade today. It looks like the yen has been named the currency safe haven for now.
Asian Session Outlook
Yesterday’s trade in the Asian session was in favor of their three major currencies. The Japanese yen, Australian dollar, and New Zealand dollar gushed upward against its American and European currency counterparts. The movement of the Asian currencies against European counterparts was dramatic. At the beginning of the trade, euro had a bullish breakout against JPY, AUD, and NZD; 2-5 candle sticks after it had a reversal. As against JPY, it had a reversal after hitting 109.41 price level. For the AUD, it u-turned after touching 1.3143. Lastly, the EURNZD pair declined after making resistance level at 1.7632. The Asian currencies may have rallied despite Bank Holiday probably perhaps it was the currency safe haven for now as USD was badly affected by the blizzard in their country.
For today’s session, the Japanese yen might still pursue a bullish channel against greenback and fiber. Before the holiday started, Japan strongly implied that their economy is strong. There may be no economic indicators for Japan but for now, it is still considered as the traders’ safe sanctuary for trade.
Meanwhile, the aussie and kiwi may also look at an upward trend as euro is still infected by the contagious debt crisis while greenback at the moment is affected by the blizzard that occurred in the east coast.
More, the three musketeers of Asian currencies can expect further escalation as China increased their interest rates to control inflation. The Asian stocks rallied and so is the trade of their respective currencies.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
