USDJPY - Long followed by Short
The USD/JPY rose on Friday for the fourth-day in-a-row, extending weekly gains to more than a hundred pips. During the American session peaked at 109.88, the highest level since December 31. It is about to end the week on a strong note, trading around 109.70/75, 125 pips above the level it had seven days ago. A critical event in the US continues to be the federal government shutdown. Negotiations next week are likely to take place. The shutdown implicates that economic data from the Bureau of Economic Analysis and the Census Bureau will be postponed. Fears about the impact on the economy will continue to rise.
With fears rising, this will pose a weakness in the USD & hence strengthen the JPY & CHF as always when there is a political uncertainty.
With fears rising, this will pose a weakness in the USD & hence strengthen the JPY & CHF as always when there is a political uncertainty.
Trade at your own risk.