Jump to content
Find Professionals    Deals    Get Quotations   Portfolios
Sign in to follow this  
Anzo Lim

The Forex Market May Face the Risk of a Flash Crash

Recommended Posts

https://www.wikifx.com/cn_en/

As Japan enters a 6-day’s New Year Holiday, forex investors are worrying about the risk of another flash crash. The USD/JPY pair once tumbled from 108.90 to 104.80 within minutes on January 3rd, 2019. Due to liquidity shortage during the holidays, The Financial Futures Association of Japan has voiced warning about possible risks in this aspect.

 

A red flag to beware of this time is the Turkish Lira(TRY). Data from the Tokyo Financial Exchange shows that individual investors in Japan have been speculating over many currencies, and bullish outlook for the TRY recently prevails the market. Meanwhile, Turkish Lira has fallen over 11% against the yen this year, and should the trend continues, investors accounts may face margin close-out.

 

Any market fluctuation can trigger massive TRY/JPY sell-of from individual investors for stop-loss purpose, which may further lead to a surge of the yen. As banks will be closed for the holiday from Tuesday(December 31st, 2019) until January 5th, 2020, investors may not be able to react to margin call or margin close-out.

 

USD/JPY daily pivot points  108.93-109.11

 

S1  108.59                 R1  109.28

S2  108.33                 R2  109.71

Edited by Anzo Lim
 

Share this post


Link to post
Share on other sites
Looking for good contractors? Click here for your request

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×