Yahoo Finance Japanese Yen Strengthens on Risk Aversion
Market concerns over the largest economy in the world experiencing a slowdown is sending shockwaves across financial markets, with risk aversion boosting appetite for safe-haven currencies. The Japanese Yen was a trader’s best friend today after appreciating against every single G10 currency. With risk-off the name of the game, the Japanese Yen could take a shot at claiming King Dollar’s throne.
Focusing on the technical picture, the USDJPY is under pressure on the daily charts. An appreciating Yen has sent the USDJPY below 107.50. A solid weekly close below this level is likely to encourage a decline towards 106.90.
EURJPY trades to near 3 week low
A broadly appreciating Yen also sent the EURJPY towards 117.40.
Sustained weakness below the 117.50 level should inspire bears to attack 117.00 and 116.50. Should 118.00 prove to be unreliable resistance, the EURJPY could push back towards 118.60.
GBPJPY eyes 131.00 on rising risk aversion
Sterling has weakened against the Japanese Yen 3 thanks to global growth fears and Brexit related uncertainty.
The GBPJPY is turning bearish on the daily charts and is positioned to drop further if 131.50 gives way. Technical traders will be looking for a solid daily close below 131.50 which could open a path towards 130.70.
Commodity spotlight – Gold
Gold was back in fashion after disappointing US economic data renewed fears over slowing global growth. The precious metal is set to push higher this week if risk aversion remains a dominant market theme.
Looking at the technical picture, an intraday breakout above $1485 should inspire an incline towards the psychological $1500 level.
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This article was originally posted on FX Empire
