I'm Neutral; and here's why...

29 thg 4, 2018

So a new week for the traders, and a bright one too. We have the Personal Consumption Expenditure Index (PCE) this week, following a Harmonized Consumer Price Index (CPI) on the same day. The PCE is much favored by the Fed when gauging inflation. and is now much favorable as it inches the much desired 2 pc. Moreover, the GDP figures came hot on Friday, creating prospects of further economic growth. The BoJ, on the other hand, just said that "The trade spat and the strong yen are seen as possible risks" . Well, that is indeed music to the traders' ears. This can send the USDJPY soaring even further.

But the recent technicals reveal a total different face. Here, we can see that at the close, the pair successfully broke the rectangle. Moreover, a shooting star was noticed. If the pair breaches out of the falling wedge, it also means it surpasses the Pitchfork support wall. This can indicate a trend reversal. The ADX is revealing a strong presence of downtrend, supported by the MACD and the WMA which is suggesting a strong move down.

Provided the technicals and the fundamentals, I would suggest traders to use the technical analysis for short-term and the fundamentals for long term trades. The decision, at the end of the day, is up to you.

Best of luck!
-Riz