A dangerously thin demand for risk
Japan's Nikkei225 is moving further into the region of 31-year highs above 30,000. However, this is happening on ever-decreasing volumes. It could be a signal of buyer uncertainty or a just decrease in trading activity during Lunar New Year celebrations. Whatever the case, it looks that the ‘sell high’ strategy is the more reliable one in such a dynamic market.
USDJPY pulled back last week as it tried to rise above the 200 daily moving average. Today it is testing that line again, rising to 105.50. Another pullback promises to signal that the large capitals still hesitate to switch from a ‘coronavirus trade’ to a ‘recovery trade’.
EURUSD, meanwhile, is hitting resistance near the 50-day average at 1.2150 due to the cooling economic recovery.
https://fxpro.news/daily-economic-events/a-dangerously-thin-demand-for-risk-20210216/
