USD/JPY, the Third most widely traded currency of the world, is showing new layers. Recently you have witnessed that Flexibility has become an attractive feature of Yen. The news of the vaccine of the COVID19 has created optimism in the Forex traders. It has made world hopeful for a cure of this terrifying pandemic. Obviously it will result in stimulating risky trading deal. Ultimately such irrational and risky trade will affect and reduce the charm of USD.
Last month has seen a rectangle pattern of downtrend of USD/JPY. This pair is also referred as ‘The Ninja’. The current state of Forex market indicates that this nickname suits this pair very much. Undoubtedly it is dealing with the trading pressure like a ‘Ninja’. Despite being under pressure, this pair manages to be in spotlight. Particularly the second half of November was not favorable for this pair. The RSI shows that the price of this pair is about 50 point. The resistance is 59 point for this pair. All eyes are fixed on the price to know if it will move towards this resistance point or not. The Inflation data revealed by US economy does not manage to shake the market as the figures of trade are almost same. You can witness that there are no significant changes due to this Inflation report.
Flexible Yen and pairing currencies:
JPY has experienced a decrease in its value as compared to major currencies such as EURO etc. The currently prevailed uncertainty in Forex trading has made traders to think twice before trading. Although Yen has lost ground against many currencies yet it is still showing flexibility against USD. The struggle continues but the long-term scenario seems bearish for USD/JPY. The recent trend for this pair is regarded as a mixed one.