I’m still looking for buying opportunities on USD/JPY after the pair broke below 101.50 last week, this was supported by risk aversion over the ongoing European banking health concerns. Fed watcher Hilsenrath writes that debate among Fed members on rate hike is intensifying, with yen weakness seen amid increased risk appetite in Asian stock markets and as the BoJ kicks off its 2-day policy meeting.
Make sure to keep a close eye on the news feeds in case any further safe-haven flows develop which will push this pair lower again.
You can look to go long this pair around the 101.20 area with a longer-term profit target of 102.20 and a SL around 100.90
Overall Bias on this trade
This is a longer-term trade setup and I remain neutral on USD in the long term but feel that USD/JPY will rally mainly because of central banks differences, with the FED tapering QE and the BOJ still full steam ahead with their QE programme.If the price falls down to 101.00 I expect it to be supported, so this would bean even better price to buy USD/JPY.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.