Foreign Exchange Online - Masakazu Sato's Practical Trading Techniques | Technical and fundamental analysis predicting the future of the three major currencies [This month's theme | How to overview the panic market of the novel coronavirus with the Ichimo

To avoid falling into the bottom of fear and anxiety during the panic market caused by the novel coronavirus, you need a broad view and a panoramic perspective. A powerful ally in formulating a calm market outlook is the Ichimoku Kinko Hyo. This innovative technical indicator visually expresses that markets are governed not only by price but also by time. This time, using the Ichimoku Kinko Hyo, let's take a calm look at the forex market swayed by the Corona Shock.

※This article is a reprint/edit of FX攻略.com’s June 2020 issue. The market information written in the main text may differ from the current market, so please note.

Masakazu Sato Profile

Sato Masakazu. After working at a Japanese bank, he joined Paribas Bank (now BNP Paribas) in Paris. He has held positions such as Interbank Chief Dealer, Head of Funds, and Senior Manager. Subsequently, he became Senior Analyst at Online FX, which boasted the highest annual trading volume. He has been involved in the world of forex for more than 20 years in total. He appears on Radio NIKKEI’s “Stock Market Live Commentary! Stock Chat,” Stock Voice’s “Market Wide—Foreign Exchange Information,” and regularly provides market information on Yahoo! Finance.

Volatile U.S. dollar/yen and past milestones. Will USD/JPY break below the iron support at 100 yen?!

The spread of the novel coronavirus has become a pandemic, causing panic in financial markets around the world, including the United States. It is impossible to forecast the situation after late April when this magazine goes on sale, but the global simultaneous stock sell-off is already surpassing the movements seen in the 2008 Lehman Shock.

Among financial markets, stock markets have fallen especially hard, and there is a trend toward selling assets such as gold (which has a profit) and U.S. Treasuries to cover losses. Every financial product is crashing, and there is a movement to secure cash (U.S. dollars) at all costs. Therefore, in the second to third week of March, an unusual rise in the dollar and decline in the yen has progressed, but it is stopping at the lower cloud of the USD/JPY monthly chart. The near-term reference points are whether this cloud can be broken upward and whether it can break through the 112.23 yen recorded on February 20.