The Japanese Yen has made a counter-trend advance on speculation that the Japanese government is about to intervene to boost the relative value of the currency.

1. The Japanese Yen gained in value over the Asian session, falling by 0.63% against the US Dollar and by 0.47% against the Euro. The proximate cause was a comment from a Japanese minister which fueled speculation that a Yen-positive intervention was imminent. The minor bearish retracement in stock markets also gave the Yen some tailwind. However, the Yen is in a long-term bearish trend, so it is not clear that this bullish move will last or follow through much.
2. Yesterday’s strong rally in stock markets, which saw both the broad S&P 500 Index and the technology-focused NASDAQ 100 Index make new all-time highs, has had a minor bearish retracement over the Asian session. However, trend traders will want to remain long of these indices, and likely the Nikkei 225 Index and the KOSPI Composite, which have seen truly stellar performances this year.
3. Gold and Silver have continued to fall sharply, with Gold now trading well below $4,000 and Silver trading below $46.50. These strong falls are partly a function of the high volatility seen in the price movements recently – what goes up very fast tends to come down very fast – and a move away from safe-havens following Trump’s recent signals that a trade deal with China will be reached.
4. In the Forex market, the Japanese Yen has been the strongest major currency since today’s Tokyo open, while the Canadian Dollar has been the weakest. The USD/JPY currency pair is in some focus after triggering a long trade entry at most trend-following funds two weeks ago, but is looking less bullish as it trades below ¥152.00. Another bearish feature is the double top we are seeing in the price chart above ¥153.00. Trend traders will still want to be long here.
5. Soybean futures look likely to make a bullish breakout to a new 3-month high price today. This may interest some trend or breakout traders. I personally like to wait for a 6-month high price before buying commodities. If Soybean futures are too big and expensive for you, you could consider the more accessible and affordable ETF SOYB if you want affordable exposure.
6. There are no high-impact economic data releases scheduled today, so it might be a relatively quiet day in the market, although the huge events anticipated for later this week are more likely to inject above-average volatility into trading.

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