The pair stays higher for the moment, after the yen weakens over the weekend, but the movement remains limited by 200 MAs for now. This prevents buyers from assuming short-term market control.
It should also be noted that there are around 108.00 waiting positions that hamper price action and keep it limited, with the expiration of options of about $ 3.4 billion that expire on Wednesday and are also set to play a role in the development of things in the next few sessions.
In addition, additional resistance lies at 108.30-40.
But for now, the markets are still passive in anticipation of some key decisions by central banks, so we may not see a clear direction until then. The yen will be generally dominated by trade talks above all else, so watch bond yields.
They are close to their 0% change for the session, but 2-year yield is 1.3% up to 1.831%. This will also be the scene for a possible yen movement, as markets focus on the ECB.
The key pairing level is 106.78. If the price begins to fall below it, it may be a free fall to the bottom of a flash crash in January.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.