Wilson Leung, director of Trendsetter FX joined Tip TV today to discuss the status of the FX market.
Yen eases after safe haven role
Leung notes that during the Greek crisis and Chinese meltdown, that Yen played a key role as a safe haven and now that the tensions have subsided the currency has followed suit. He continues to note that USD strength reached a 13 year high in June, and he doesn’t favour an early Fed interest rate hike in September.
USD/JPY long shot
Leung feels that the USD/JPY pair remains technically range bound and that a close above 125 could open the door for a push to 127. He recommends that traders get long on dips around 124.
EUR/USD downside dominates
Looking to EUR/USD, Leung believes it is a sell, as the pair looks likely to revisit April’s low in August as simultaneously the Greek talks come to the last hurdle. He recommends a sell at 1.08 with a stop at 1.09, targeting 1.06.