Signs of Shifting Sentiment for Yen Short Term
However, the Yen has begun to weaken this morning as sentiment has shown signs of shifting.
Yen Weakening Slight this Morning
Welcomed stability has emerged in nervous Asian markets this morning, and Japan’s Nikkei Index has actually produced gains. The Yen has come off its strongest ratio and is above the 105.00 level versus the U.S Dollar.
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The Japanese currency has proven quite strong in the mid-term as risk-averse investors have sold the U.S Dollar consistently against the Yen. Support appears to be the 104.55 mark, while resistance near term may be around 105.80.
Worst of Political Storm over in Japan?
The political scandal surrounding Prime Minister Abe has not disappeared, but traders may have digested the worst part of the storm. And if Asia develops more risk appetite, the Yen may begin to soften and a reversal towards weaker values may increase momentum.
Risk management is always necessary with the Yen and patience is an important component for success. And the Yen is sure to produce a test of its range in the coming days.
In the short term, we believe the Yen could be negative. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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