Yen weaker in early trading in Asia
Its still very early days yet as we begin yet another week in trading. The most important event in the upcoming week would be the Jackson Hole Symposium where the meeting of the big heads of the Fed would be taking place. This is scheduled for Friday and the market would, again, be looking for cues on when the US would start raising its interest rates. It has been quite a long wait so far this year for the US to start showing indications of the raise and so far, despite the jawboning from many officials, there has been nothing concrete. We still believe that there would not be any interest rate hikes this year.
The Japanese PM did his part of the jawboning during the weekend. They usually do this when the yen begins to get stronger and USDJPY gets near to 100 and that’s what they have done this time as well.
Your capital is at risk
A trade to watch out for , this week, is the EURGBP. Attached below is the weekly chart where, last week, the price hit a 3 year old resistance and went down.
This resistance has been around for quite some time and would be a tough nut to crack. It would be interesting to wait and see if the bottom of the last weekly bar (which comes around 0.8590) will be broken and if that happens, then we could be seeing some good downside on the EURGBP pair.