Current Positions:
- EUR/CHF: Sell entry at 0.9875
- Stop loss at 0.9918
- BTC/USD: Buy entry at 68207.27
- Stop loss at 65715.00
Market Commentary:
USD/JPY: Steady Outlook with Focus on Fed Officials’ Speeches
USD/JPY reached 156.55 in the afternoon, continuing the yen’s depreciation trend from the previous day. However, some profit-taking occurred before the London session, causing a temporary pullback.
Despite this, the trend still favors a stronger dollar and weaker yen. The selling of Asian stocks has temporarily paused risk-on yen selling, but risk aversion remains limited. The yield on the Japanese 10-year government bond reached 0.980% in the morning, the highest since 2011, with 1% in sight. Despite rising yen bond yields, yen buying is subdued.
The EUR/JPY pair approached the significant level of 170, reaching 169.94, highlighting notable yen selling. Caution is warranted for further rises in USD/JPY and cross yen pairs. Slow movements in EUR/USD and GBP/USD favor dollar weakness, potentially limiting USD/JPY’s upside.
Attention is on speeches by Fed officials at 22:00, including Governor Waller. Comments from multiple officials, including Vice Chair Williams of the New York Fed, are scheduled. If hawkish Waller hints at moves towards a rate cut, it could trigger swift market reactions.
(Source: Minkabu)
Strategy:
No action on USD/JPY due to unclear trends. Continue focusing on strong trends in cryptocurrencies, considering buying Bitcoin or Solana.
Watch for the Canadian Consumer Price Index (CPI) at 21:30. Follow the trend if a clear direction emerges for the Canadian dollar.
