(
MENAFN- Daily Forex)
- You can see that the Swiss franc initially pulled back a bit against the Japanese yen during trading on Thursday to reach the 172.5 yen level only to turn around and show signs of life again.
- In fact, we bounced rather significantly gaining 100 points.
- That is a very big move in this pair, which typically is choppier than anything else, as it is considered to be two carry trade currencies and two safety currencies.
So, because of this, I watch this pair quite often because it'll tell me which one of the two currencies I want to short against other currencies. For example, now that the Swiss franc looks like it is trying to break higher against the Japanese yen, you will get more mileage going long something like Aussie against the yen as opposed to Aussie against the Swiss franc. Both would probably work out, but this gives you a relative strength index of safety currencies and therefore this is one of my favorite pairs to watch, mainly because it gives you a look at what the markets are likely to do in general.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Technical Analysis Looks Good
The technical analysis for this pair does suggest that if we can break above the 174.5 yen level, then we really should start to take off. It's worth noting that this candlestick is very strong, and that the Japanese yen has lost strength across the board during the day. It is because of this that I think you are going to continue to see upward momentum, and keeping an eye on this chart can give you an idea as to how most yen-related pairs should behave. If we were to turn around and break down below the 172.5 yen level, then the 50-day EMA comes into the picture as a potential support level. This is an area that we will have to be cognizant of, as it will attract a lot of people and traders to get involved. This market will typically be choppy, but it is likely we will see a bigger and longer-term move.
Ready to trade our daily Forex analysis ? We've made this forex brokers list for you to check out.
MENAFN18102024000131011023ID1108794452
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment