Japanese Yen Futures Trading at Key Level

July 25, 2018 2:58PM CDT

Following such developments as:

  • the reports of the Bank of Japan discussing the possibility of scaling back their accommodative monetary policy
  • the news of Chinese stimulus (related to tariffs and trade war)

the Japanese Yen future is trading at a number of key levels, pictured in the chart below.

While this fundamental shift is noteworthy, so is the corresponding price action from a technical standpoint.  As of Wednesday afternoon, the September Yen futures contract was trading around 0.0090540.  Also noteworthy is the 0.009050 level which was also the level of the lows earlier in the month and the highs from the 10th to the 22nd.

The market’s trading has also broken above the trendline from the June 25th high and the high on the 22nd of this month.  While the highs of today and the 22nd could form a double top, in light of the fundamental developments, broken longer term trendline and intact trendline from the July 19th low, it is more likely that the lows from the 23rd until today are forming a sloppy double bottom.

Japanese Yen Sep '18 240min Chart

Japanese Yen Sep '18 240min Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.