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Yuan vs Yen Technical Analysis - Yuan vs Yen Trading: 2022-05-11
CNH JPY Technical Analysis Summary
Below 19,21
Sell Stop
Above 20,20
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Sell |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
CNH JPY Chart Analysis
CNH JPY Technical Analysis
On the daily timeframe, CNHJPY: D1 went down from the Head & Shoulders pattern. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if CNHJPY: D1 falls below the latest low of 19.21. This level can be used as an entry point. Initial risk cap possibly above the high since June 2015, the last three upper fractals, the upper Bollinger band and the Parabolic signal: 20.2. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (20.2) without activating the order (19.21), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of PCI - CNH JPY
Weak economic data came out in China. Will the CNHJPY quotes continue to decline?
In this review, we propose to consider the personal composite instrument (PCI) Chinese Yuan / Japanese Yen. It declines when the yuan weakens against the US dollar and the yen strengthens. PCI reflects the dynamics of the difference in the economic development rates of China and Japan. On May 9, the China Trade Balance ($51.12 billion) for April was published. It turned out to be worse than the forecast of $71.92 billion, as export growth amounted to only 3.9% y/y (in yuan +1.9% y/y). The Caixin China Composite Purchasing Managers Index for April was released last week. It amounted to 37.2 points. This is less than during the global economic crisis in 2008, but still more than during the coronavirus epidemic in February 2020 (27.5 points). Theoretically, some decline in Chinese economic indicators may be a consequence of the coronavirus lockdown. May 11, Wednesday morning, China will release data on inflation and lending figures (The People's Bank of China new yuan loans) for April, which may affect the dynamics of the yuan. For the Japanese yen, an increase in inflation in Tokyo (Tokyo Consumer Price Index) in April to 2.5% y/y may become a positive factor. This may stimulate the tightening of monetary policy of the Bank of Japan at the next meeting on June 17th. The publication of Japan Current Account on May 12 may affect the dynamics of the yen.
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