RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

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

Michael O'Donnell

Mike started his career in the markets on the floor of the Chicago Board of Trade as a trade checker for a local market maker in the Dow Futures pit. This led to interning with an independent introducing broker and going on to work with a number of market participants including: speculating clients, hedge clients, introducing brokers, futures commission merchants, commodity trading advisors, proprietary traders, trading educators, system creators, and a number of international financial market participants.