With the recent trade wars now seen as less damaging than perhaps at first sight, and with Donald and Kim now threatening to become the best of buddies, financial markets are seeing a shift in sentiment as the sun peeps out from behind the clouds once more. And this is signaled most strongly in the Japanese yen which for several weeks has seen continued and sustained buying across the complex, with virtually all the yen cross pairs driven lower in a strong trend. Over the past few days however, these trends are appearing to weaken and bottom out on the daily charts. Buying of the yen has also been assisted by repatriation flows which typically occur in March and September, as major Japanese manufacturers buy the yen and convert their invoiced currencies back to their own home currency as the twice yearly accounting practice is completed

This shift in sentiment is clearly evident on the MT5 Yen index from our Quantum Trading indicators.