Has JPY been gaining strength today? or are other currencies weakening? Based on the "Forex opportunity ranking" JPY pairs should be going up, was there an unexpected event that occurred today?
Don't fall into the trap of trying to rationalise daily noise.
It's a rabbit hole, with no end, and no solution. Algo's, and short-term reactive trading dictate the lower frames which are based of irrational short-term emotions. This applies to daily activity.
It's unpredictable.
On the other side, the fundamental data represents a longer-term predisposition, and is generally what should occur over weeks/ months or even years.
But remember the fundamentals will only kick in when there is enough participants, with enough money on the underlying market (i.e. hedge funds) who also agree. - COT Report is the best resource for this.
In short, just because the fundamentals state JPY should be weak, doesn't mean the price will instantly reflect this (if only it was that easy).
And this is why the macro scores fit part of a wider framework, see below example:
Don't fall into the trap of trying to rationalise daily noise.
It's a rabbit hole, with no end, and no solution. Algo's, and short-term reactive trading dictate the lower frames which are based of irrational short-term emotions. This applies to daily activity.
It's unpredictable.
On the other side, the fundamental data represents a longer-term predisposition, and is generally what should occur over weeks/ months or even years.
But remember the fundamentals will only kick in when there is enough participants, with enough money on the underlying market (i.e. hedge funds) who also agree. - COT Report is the best resource for this.
In short, just because the fundamentals state JPY should be weak, doesn't mean the price will instantly reflect this (if only it was that easy).
And this is why the macro scores fit part of a wider framework, see below example:
Hope that helps
Understood, thanks for your help