Forex Diva's report

Video: What does return of Abenomics mean for Japanese economy?


Dec.16.2014

Remember we talked about Japanese snap elections a few weeks ago? Japanese Prime Minister Abe at the Liberal Democratic Party won it in a snap! Another less important but still exciting news out of Asia is that  Invest Diva won the Best Financial Media Content Provider Award at the Shanghai Forex Expo :)

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So what does this whole snap election victory mean for the economy and Mr. Japanese yen? On the economics side, this means that “abenomics” will carry on. Yay for his fans as well as those who had confidence in his policies. He seemed super excited on Japanese TV after the elections and we could expect more economic reform in Japan, including but not limited to adjustments in  government spending, monetary easing, strengthening the Japanese military and reopening nuclear reactors. So the big question is, will the Japanese Yen become weaker after this? We know that a weak Japanese yen could be good for the country’s economy especially the export industry, but some Japanese citizens think that Abe’s policies have hurt their spending capacity and that they don’t seem to be translating to economic improvements so far. The key events us traders need to be on a watch-out for are whether or not Abe and his men announce another tax hike, and if the BOJ eases again which both would lead to a weaker yen. so far, Japanese yen got stronger on the market open after the victory announcement.

usdjpy technical analysis fibonacci ichimoku candlestick chart

 On the daily dance floor the USD/JPY pair is pulling back from the highs of 121 and heading back towards a key support level at 23% Fibonacci at 117. This could be a temporary pullback we were expecting, which could drag the pair all the way back to the 50% Fibonacci level at 111.600. Then, should Mr. Abe continue with his policies, we could expect another shoot back up towards 121 and higher. So for now, long term trader, stay alert for a break below 117 to plan your trading strategy.

What do you think will happen to Mr. Japanese yen on forex dance floor? Come on over to our Facebook page or on Invest Diva.com nad let me know. Also, If you liked this video, like it and share it with your friends. To  get our latest updates along with my personal stories that I only share on email, subscribe on investdiva.com.  [Insert: Learn to Trade] Invest responsibly and don't forget that only you can take care of your money the way it needs to be taken care of, so get yourself educated.

 

Intraday Forex Technical Levels


EUR/USD 4-hour Forex Dance Floor
EUR/USD 4-hour: Testing key resistance level.

Invest Diva positioning: Long positions above 1.2544 with targets at 1.2615 and 1.2702 in extension.

Technical reasons why: The pair reached our bullish target and 50% Fibonacci level at 1.2544 above the Ichimoku's cloud. The RSI is moving above the neutrality area.

Alternative Scenario: Below 1.2544 look for further downside towards 1.2474 and 1.2428.

Where I'm setting my stops and limits:

Support Levels Turning Point Resistance Levels
1.2428 1.2544 1.2702
1.2474 1.2615


GBP/USD 4-hour Forex Dance Floor
GBP/USD 4-hour: Rebounding.

Invest Diva positioning: Long positions above 1.5709 with targets at 1.5800 and 1.5873 in extension.

Technical reasons why: The pair is rebounding from our bearish target and the lower boundary of the Ichimoku's cloud at 1.5631. The RSI is heading up from the neutrality area.

Alternative Scenario: Below 1.5709 look for further downside toward 1.5631 and 1.5562.

Where I'm setting my stops and limits:

Support Levels Turning Point Resistance Levels
1.5631 1.5709 1.5873
1.5562 1.5800


USD/CHF 4-hour Forex Dance Floor
USD/CHF 4-hour: Dropped.

Invest Diva positioning: Short positions below 0.9561 with targets at 0.9501 and 0.9403 in extension.

Technical reasons why: The pair is dropping as reaching our bearish target at 0.9561 below the Ichimoku's cloud. The RSI reached the oversold zone.

Alternative Scenario: Above 0.9610 look for further upside towards 0.9695 and 0.9719.

Where I'm setting my stops and limits:

Support Levels Turning Point Resistance Levels
0.9403 0.9610 0.9719
0.9501 0.9610


USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Continues to drop.

Invest Diva positioning: Short positions below 115.48 with targets at 113.91 and 112.03 in extension.

Technical reasons why: The pair continues to move down as teasing our bearish target at 115.48 below the Ichimimoku's cloud. The RSI is below the oversold zone.

Alternative Scenario: Above 115.48 look for further upside towards 117.21 and 118.45.

Where I'm setting my stops and limits:

Support Levels Turning Point Resistance Levels
113.91 115.48 118.45
112.03 117.21


AUD/USD 4-hour Forex Dance Floor
AUD/USD 4-hour: Consolidating.

Invest Diva positioning: Short positions above 0.8248 with targets at 0.8102 and 0.7977 in extension.

Technical reasons why: The pair is consolidating at our pivot level at 0.8248 below the Ichimoku's cloud. The RSI is moving below the neutrality area.

Alternative Scenario: Above 0.8248 look for further upside towards 0.8318 and 0.8387.

Where I'm setting my stops and limits:

Support Levels Turning Point Resistance Levels
0.8102 0.8248 0.8387
0.7977 0.8318


NZD/USD 4-hour Forex Dance Floor
NZD/USD 4-hour: Faied to break above 61% Fibonacci level.

Invest Diva positioning: Short positions above 0.7790 with targets at 0.7747 and 0.7694 in extension.

Technical reasons why: The pair failed to break above the 61% Fibonacci level at 0.7834 after getting out from the Ichimoku's cloud. The RSI is heading down to the neutrality area.

Alternative Scenario: Above 0.7790 look for further upside towards 0.7834 and 0.7887.

Where I'm setting my stops and limits:

Support Levels Turning Point Resistance Levels
0.7747 0.7790 0.7887
0.7694 0.7834

Intraday Commodities Technical Levels

Dow Jones Intraday: under pressure.

Invest Diva positioning: Short positions below 17325 with targets at 17050 and 16965 in extension.

Alternative scenario: Above 17325 look for further upside with 17500 and 17625.

Gold spot Intraday: capped by a negative trend line.

Invest Diva positioning: Short positions below 1213 with targets at 1186 and 1177 in extension.

Alternative scenario: Above 1213 look for further upside with 1224 and 1230.

Crude Oil Intraday: capped by a negative trend line.

Invest Diva positioning: Short positions below 58 with targets at 53.5 and 52 in extension.

Alternative scenario: Above 58 look for further upside with 59.6 and 61.1.

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