USD/JPY Daily Video, May 16, 2018

[Sive Morten]

Good morning,

As JPY has moved slightly higher, we think that it is not time for panic yet as major resistance still holds



The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[Joh]

Thank you Sive, At the moment when the U/Y goes up, the E/U and G/U seem to go down but if the Yen gets much stronger how much of an impact do you see that will have on the G/Usd and E/Usd?

 

[Sive Morten]

Thank you Sive, At the moment when the U/Y goes up, the E/U and G/U seem to go down but if the Yen gets much stronger how much of an impact do you see that will have on the G/Usd and E/Usd?

Joh,

IMO right now the only one major economical driving factor - US interest rates. And this shift in interest rate cycle just has started. It means that JPY could rise only by some event that will trigger demand for safe haven assets. I do not know what it could be.
As we've said - if JPY will break 111 area, this will erase our bullish scenario (for Yen) and all our discussion of this subject will be useless.

But, if this will happen somehow, I mean JPY growth (USD/JPY will go down), and not economical reasons will be on a backround, this probably will be headwind for EUR and GBP, because among USD, GBP and EUR - USD demand is stronger during crisis and geopolitical turmoils.