Yesterday was a huge day for the JPY as it bullied all of the other so-called currency big boys to submission. The JPY managed to take out most or all of its losses for the past 5 days. A
bearish engulfing candle (the most recent
long candle (red) that towers over the green ones) is now noticeable in the daily charts of the samurai pairs.
Given the JPY’s strength, one might suspect that something spectacular happened in Japan yesterday. This was not the case, however, since Japan just sat on the sidelines yesterday in terms of economic reports. The events in the US (huge unexpected
NFP unemployment change, etc) led investors back to the safety of Yellowstone’s and Akkido’s caves. The JPY surged as a result of the panic in the US.
No economic reports are due in Japan today. The US will also have a break today to celebrate its independence day. Trading of the JPY will be limited and constrained, in my opinion, for these reasons.