Safe havens are a very interesting group of assets. No matter what – when things so south, they are growing. When things are all good and smooth, they are falling. It is interesting, how by watching their dynamic we can tell how things are in the world and how bad the situation really is. And today there is one particular couple that we have to watch very precisely. It is USD/JPY. Yes, for the last couple of days it has been in the center of our attention, but with good reason – it is falling despite growing greenback.

With USD being the leading currency in the couple, we all thought that it was going to grow if USD had started to gain the price. But now, the chart is clearly extending its fall that started a couple of days ago, even when USD has only gained points against the basket of six major currencies. And there are many reasons for traders and investors to support JPY at the moment. For starters, Bank of Japan refused to alter interest rates – a good sign telling us about the state of the economy. Then unrests in Hong Kong and very tangled situation around the trade deal further drove JPY higher and USD/JPY chart lower. Now there are impeachment hearings for Donald Trump – these are only adding to the uncertainty. Put it all together and there you have it – perfect conditions for JPY growth.

Of course, the chart is not just a straight line downwards. There are retracements that we should look out for. One of them might just turn into a full-on chart reversal. There is no better tool to follow it all than trading signals.