KTM FX Daily: USDJPY in limelight, ran through the 1st target
Chart of the day: USDJPY is seen igniting exciting moves on the daily chart. Finally, the pair closed above the 200MA for the 1st time since June 09, 2020, and ran through the target we set on January 28, 2021. With a higher lows and higher highs pattern, we continue to expect it will outperform further in the near term.
In the near-term, we will see 106.40 and 107.30 its 100-MA (Weekly) before propelling towards 109.00.
Flipside supports exist at 105.60,105.20 and 104.40. As long as 104.40 supports the price action, we stay bullish for 107+.
Relation trade is live with the USDT 10yr yields ripping higher to 1.30%. The next level to watch is 1.50%. With the given strong relationship between USDJPY and USDT 10yr yield, USDJPY rallies 3.50% from January 2021 lows while USD 10yr yields rally nearly 40%.
Yen:
On Monday, Japan released its good GDP number, and Nikkei hits a 30-year high as Japan’s economy bounce back better than pundits expected. The latest GDP number is good news to the Japanese equity market and bad news to the Yen in the currency market. The latest number is just a percentage below its pre-pandemic peak. The latest quarterly GDP figure boosted the Nikkei.
“Non-annualized GDP rose 3% from the prior quarter, compared with a consensus estimate of 2.4%”-Bloomberg.
Chart patterns:
- Bitcoin tops at $50,000.
- Silver tops at $28.
- EURUSD rejected at 50MA again.
- AUDUSD traced out a double top pattern.
- NZDUSD rejected at 0.7250 again.
- USDJPY closed > 200MA for the 1st time since June 2020.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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