Low water marks of 3.2500 were tested in April as traders sought the relative safety of the JPY, but as the markets resume a more confident nature the Thai Baht has begun to pick up strength against the JPY. The current value of the THB/JPY is near levels seen in March.
A fairly strong amount of resistance for the THB/JPY appears to be the 3.4900 mark. If this juncture is broken through the Thai Baht could again test stronger realms versus the JPY and could see values tested near values of 3.5200. In the short term however, the Japanese Yen has fought back and gained against the Thai Baht and is battling support near 3.4400.
The THB/JPY offers speculative traders an opportunity to test the waters of an emerging nation’s currency against one of the world’s richest nations. Over the past year of trading, the Thai Baht has enjoyed strong values against the Japanese Yen. A look at the one week chart above shows the THB/JPY is now engaged in a fight at important support. The question for traders is if current support levels will hold and will the Thai Baht be able to resume its renewed strength?
The Thai Baht has performed well against the Japanese Yen after losing initial value when the Coronavirus pandemic created fear in forex. After hitting lows of 3.2500 the Thai Baht has fought its way through resistance and is now testing critical values. The past few days of trading have seen the Japanese Yen gain some strength on a reversal after the Thai Baht was not able to penetrate above the 3.49000 level consistently.
The Thai Baht may be able to muster another fight towards resistance. The last day of trading has displayed a rather strong support level around 3.4375 and if this juncture is able to hold over the next day of trading, speculators may be tempted to test upside potential of the Thai Baht - which means buying the THB/JPY. Sentiment remains fragile in forex, but traders seem to be displaying aggressive tendencies and if optimism stays strong the Thai Baht may produce further strength against the JPY short term.
Thai Baht/ Japanese Yen Short Term Outlook:
Current Resistance: 3.4900
Current Support: 3.4375
High Target: 3.5000
Low Target: 3.4300
