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Daily Report

Yen Eases Off the Pressure26 April 2019 by Dave Evans

Morning Report: 07.00 London

The Japanese yen is giving back ground won over the last few days this morning. The USD/ JPY is back on the rise after reversing below 112.00 yesterday. Other yen pairs are on the rise, with the AUD/JPY reversing half of yesterday’s losses. The EUR/JPY struggled against heavy selling yesterday and is recovering some of these losses to test the 125.00 level. Meanwhile the GBP/JPY is back above 144.00 after slipping below yesterday.

The dollar index is unchanged, but remains within reach of the highs. Dollar pairs are mixed, with the AUD/USD rallying for the second straight day. There is still some way to go to recover the mid-week losses however.

The GBP/USD is posting small gains that make good most of yesterday’s losses, while the EUR/USD is unchanged and failing to recover the week’s slide below 1.1150. The EUR/GBP is sliding for the third day in a row and is now firmly lower for the week at 0.8630.

The USD/CAD is unchanged after failing to push through the 1.3500 level yesterday. By contrast, the USD/CHF is holding resistance above 1.020.

Coming up today

SNB Chairman Jordan speaks at 08.00.

US advance GDP Q/Q is released at 12.30, alongside advance PCE price index.

Revised UoM consumer sentiment is at 14.00.

Trade Idea

The Australian dollar has endured a steady decline this week as concerns over China resurface and the US dollar steps up a gear.

Yen Eases Off the Pressure

There could be further downside from here and a good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7000 in 14 days for a potential return of 138%.

Yen Eases Off the Pressure