The yen paradox: the probability of growth has increased, but the risk of falling has increased


Yesterday, the Japanese yen lost 51 points amid the mixed closing of US stock indices (S&P 500 -0.15%, Nasdaq +0.42%). But today there is growth in all Asian markets; Nikkei 225 0.59%, China A50 0.15%, ID Composite 0.33%. Technically, the price is currently slightly higher than the opening level of the environment, which can simply repeat the growth scenario of that day. The immediate goal of the price is to gain a foothold over the trend line of the price channel (above 113.15) in order to break through to the long-awaited target 115.15 with new forces.

But the probability of this scenario has now increased due to the recovery of stock indices.

In the evening, US employment figures for November will be released, on Tuesday, the British Parliament votes on Brexit. Also on the four-hour chart, the price has not yet fixed above the Krusenstern trend line (blue), which ultimately creates a certain waiting period. In the event of another panic in the market, the yen may decline to 110.90 – to support the local downward price channel.



The material has been provided by InstaForex Company -