By Admiral Markets
Following Trump’s historic Presidency election win, there was a sudden move for risk-off due to the uncertainties of his polices with safe-haven currencies like Yen, appreciating strongly. Nonetheless, once Trump in his acceptance speech concluded that the population must once again re-unite, he also signaled there would be more infrastructure spending and tax cuts, which boosted Equities instantly, and in particular risk-on barometer commodities like Copper and Iron ore. This caused immediate weakness in JPY.
Technically we have an over extension of the pair where today’s ATR exceeded average 7/14 by 60 pips and the day is still far from over. H5 has been broken without any retracement. This huge over-extension can lead the pair towards 133.25 and 134.60 if wee a 4h close above 133.25 (historical bullish order block). POC comes within 130.25-55 zone (38.2, H4, bullish order block) but when trend is so strong the chance is that we might not see retracement towards POC or it might be shallow. My opinion is that POC could be reached only on strong profit taking. If we don’t see any retracement watch for 4h close above 133.25 on way towards 134.60.
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Article by Admiral Markets
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