Potential Signal:
Start Trading Now With The World’s Best Trading Platform! That being said, the market were to break above the ¥190 level on a daily close, I think that could send the British pound much higher. Furthermore, you need to keep an eye on the Japanese yen carry trade overall, because the JPY-related pairs tend all move in the same direction. If we continue to see the Japanese yen strengthen, we will not only see it here, but we will see it in multiple pairs around the world. Ultimately, this is all about going “risk off”, and at this point in time that would not be a huge surprise considering that the recent selloff had been so brutal, and of course a lot of people will be very cautious about trying to jump back into this market. However, if we can break above the crucial ¥190 level, that might build up enough confidence for people to do so. Downtrend Still StrongThe downtrend is still strong from what I can see, and although we have bounced quite a bit, the reality is that he had fallen 28 handles, but then turned around to bounce just 6 after that. While it is an impressive rally in the short-term, when looked at through the prism of the last two months, it’s but a blip on the radar. It is because of this that I would be very cautious about jumping in right away, and I do think that it is probably going to be a scenario where traders are extraordinarily cautious about taking on risk. Don’t get me wrong, you do get paid at the end of every day and that of course is something worth paying attention to, so we will have seen whether or not the carry trade come back into vogue.More By This Author:USD/CHF Forecast: Choppy Trading Amid UncertaintyGBP/USD Forecast: British Pound Slams Into The 50 Day EMAPairs In Focus – Sunday, Aug. 11
