Risk aversion flows may have peaked and the risk rally could not continue, but given the measured responses from China on trade, Yen’s strength that we mentioned last week could be under pressure.

As we have some Yen longs, this trade seems to be the best to partially hedge them. Technically NZD/JPY is testing a level that was not seen since May of last year, and is about to confirm an Inverted Hammer. If it closes that way, on tomorrow’s pullback we open our longs towards the 78 big figure, with a very close SL.