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Yen: Short Term Trade Of The Month In August 2019?

The Japanese Yen broke out this week. Obviously there is a link with the turmoil created by central bankers and other government officials. The U.S. Feds lowers interest rates, Mr. Trump issues more warnings on tariffs, and so on. It typically takes a few days, until the dust settles, to see new (short term) trends. The breakout of the Yen looks solid, and suggests this is a great short term trade idea most likely in August of 2019. Note that this is unrelated to the investing opportunities we mostly cover on InvestingHaven, nor is there any link with our investing method.

The Japanese finance minister warned they seek currency stability. Whether it means they will intervene is not clear. But we want to be cautious here. The currency market is anyways very volatile.

If we just look at the chart, and exclude any monetary or economic analysis, hence focus on the short term, we see this pretty solid breakout. We did annotate it in green on below chart.

The Yen is now set to rise to 95.50, a 3 pct gain which looks like a pretty easy one. This might clear the way to 99 points, another 5 pct.

The Yen is mostly pretty clear in its chart setup, even though it is ultra volatile. A breakout like the one going on right now has a high level of confidence. However, we saw in Oct-Dec last year that it may, just like any other move, get invalidated. The false breakdown from back then is indicated in red.

Be careful trading on the short term, and be certainly nimble. Fast in (even though sometimes it may require a few attempts), fast out, fast satisfied, is what we believe is required.

From the hundreds of charts we review on a weekly basis this looks like the most promising setup for the month of August 2019.

yen breakout August 2019

 
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