Risk Events Cause JPY To Strengthen
Wed 23rd August 2023 : Daily Forex Price Action
Today we’re looking at Trading Setups in:
- GBPJPY (Primary Focus Pair)
- USDCAD (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
Risk warning: Trading carries a high degree of risk. Read more here.
The risk events in the market this morning have caused the JPY to become the strongest currency according to our live proprietary forex strength vs weakness tables.
European and UK PMI data came out below forecasts this morning, causing the market to shift its risk tone once again.
We highlighted the probability of it being a difficult trading week in the post on Monday.
This is due to it being a combination of high impact data week, the end of the month and we are in August.
Our tables at 9am showed no currencies with a confluence, telling us that there is a lack of directional markets at the moment, which is key to our trading.
In these market environments it can be best to stay away.
That being said, later in the morning/early afternoon, USD and CAD have become highlighted on the tables.
This doesn’t mean we should rush to trade this pair, although technicals do show price in an upward trend, heading towards key resistance above at 1.3650.
Despite this, we still have US data to come and it may pay us to not get involved for now.
