Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY/KRW entered a basing phase this week, finding firm support just shy of KRW10.4000. The rate has headed higher today, stoking hopes for a bullish reversal. This expectation is underpinned by the RSI's return above the 30 threshold, as well as a (not particularly pronounced, admittedly) bullish divergence showed by this indicator. Last Friday's dip took JPY/KRW under the lower 2.0% Bollinger band was another signal pointing to oversold conditions, but the rate returned above there as it began to trade sideways this week. Worth mentioning that the rate charted a bullish Harami candlestick pattern into the beginning of this week, but failed to ascend in its immediate wake. From a longer-term perspective, JPY/KRW started to build a base just as it approached the 50% retracement of the 2015 - 2020 rally at KRW10.3529.
- JPY/KRW last deals +364 at KRW10.4696. Should the rate manage to garner some more topside momentum, a breach of channel top at KRW10.5763 would reinforce bullish expectations, bringing Nov 30 high of KRW10.6521 into view. Conversely, a clean break below the aforementioned KRW10.38 area, followed by the lower 2.0% Bollinger band/Fibo retracement level at KRW10.3578/10.3529, would bring bears back into the driving seat, giving them a green light for targeting channel floor at KRW10.2383.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.