Yesterday the JPY pairs fell and in the second part of the trading session, they flew back up rapidly. I use TTN service for news and they reported:
CLIMBS BACK ABOVE 162 LEVEL AS EQUITY SELL-OFF CONCERNS FEEDING INTO A CARRY-TRADE LIQUIDATION DOES NOT MATERIALIZE
- Dealer says firmer stocks provide carry trade unwind relief rally
<GBP/JPY EUR/JPY>
At first, I concluded it was a fundamental/Carry trade reason, why the market behaved that way. Yet, I decided to take a look at the GBPJPY and EURJPY chart, and Lo, I saw that EURJPY had hit it's weekly S2 support+ Monthly Pivot+200 SMA+ on the 4H chart. I then looked at GBPJPY and amazingly, it had hit the same 3 levels. The 200 SMA was on the 4H charts.
I had seen this similar occurance in Feb when GBPJPY had a masive fall. A look at the weekly chart revealed it had a hit a powerful resistance level there. Yet, fundamentals showed chinese stock market crashing, carry liquidation, etc etc.
Is this a co-incidence? If it is, it is too much for one. Anyone mind sharing their observation, thoughts and knowledge?
CLIMBS BACK ABOVE 162 LEVEL AS EQUITY SELL-OFF CONCERNS FEEDING INTO A CARRY-TRADE LIQUIDATION DOES NOT MATERIALIZE
- Dealer says firmer stocks provide carry trade unwind relief rally
<GBP/JPY EUR/JPY>
At first, I concluded it was a fundamental/Carry trade reason, why the market behaved that way. Yet, I decided to take a look at the GBPJPY and EURJPY chart, and Lo, I saw that EURJPY had hit it's weekly S2 support+ Monthly Pivot+200 SMA+ on the 4H chart. I then looked at GBPJPY and amazingly, it had hit the same 3 levels. The 200 SMA was on the 4H charts.
I had seen this similar occurance in Feb when GBPJPY had a masive fall. A look at the weekly chart revealed it had a hit a powerful resistance level there. Yet, fundamentals showed chinese stock market crashing, carry liquidation, etc etc.
Is this a co-incidence? If it is, it is too much for one. Anyone mind sharing their observation, thoughts and knowledge?