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Forex Today: Japanese Yen Gives Back Gains

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked with...

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The Japanese Yen's gains following the ruling coalition's loss of control of the upper house of Parliament have not been sustained.

  1. The Japanese election result sent the Yen climbing firmly yesterday, but the gains have been short-lived and have mostly been given up. The outlook for the Yen on the current political changes is unclear. The Japanese Nikkei 225 Index has seen a day of losses after Tokyo reopened for trading following Monday's holiday.
  2. Precious metals rose quite strongly yesterday, with Gold in the news after it traded a fraction above $3,400 for the first time since June. Gold has been consolidating in recent weeks but remains within a long-term bullish trend. Silver was also notable for trading above $39 per ounce, and remains not far from its 13-year high at $39.41.
  3. Major US stock market indices the NASDAQ 100 Index and the S&P 500 Index both closed at record highs yesterday but had given up some of their earlier gains to print notable upper wicks on their daily candlesticks, which might give bulls reason for caution. Nevertheless, the bullish advances into blue sky cannot be denied, and could be more pronounced without the current tariff uncertainty.
  4. In the Forex market, the Japanese Yen has been the weakest major currency since the Tokyo open, while the Swiss Franc has been the strongest. The EUR/USD currency pair remains within a valid long-term bullish trend but is still quite far from its near-term high price despite gaining quite strongly yesterday to trade above $1.1700.
  5. The digital asset Ethereum is declining today after about two weeks of straight gains. Bitcoin also seems to have turned a bit bearish after rising to an area near $120,000.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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