Japan’s unemployment rate and Consumer Price Index (CPI) are due to be released at 23:30 GMT with expectations at 3.5% and 2.2% respectively.
In the past month we have seen USD/JPY stuck in a range between 118.7 and 120.5. Currently it is trading on the lower end of this range at 118.85 as observed in the chart below.
The Bank of Japan (BOJ) has lowered its CPI and GDP forecasts but maintained that its 2015 policy is steady.
If you think the pair will rebound from its lows on account of poor data from Japan or the strengthening of the Dollar, you can purchase a Call option that is out-of-the-money (OTM), which is cheaper than an at-the-money option (ATM).
The position:
Buy a Call with strike rate 119.20 that expires tomorrow (01-May-15) for amount 100,000 USD (1 lot).
Web-platform position:
MT4-platform symbol:
The chart below shows the profit or loss of the trade over a range of USDJPY rates at expiry If USDJPY moves to 119.495, you will be in 100% profit. If the pair trades lower, you cannot lose more than the premium of this option which is 80.77 GBP (124 USD).
The content provided is made available to you by ORE Tech Ltd for educational purposes only, and does not constitute any recommendation and/or proposal regarding the performance and/or avoidance of any transaction (whether financial or not), and does not provide or intend to provide any basis of assumption and/or reliance to any such transaction.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.