We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • $EURUSD Daily Pivot Points: S3: 1.1036 S2: 1.1056 S1: 1.1067 R1: 1.1087 R2: 1.1095 R3: 1.1115 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • US President Donald Trump expected to sign the Hong Kong Bill -BBG citing person familiar with the matter $USDJPY
  • #Yen up in morning Thursday trade after US President Donald Trump said he thinks China is not "steeping up to the level" he wants in #tradetalks. This is as the #HKBill passes in the House, heading his way for potential signing. Risk aversion for Asia may be ahead $USDJPY $AUDJPY https://t.co/4s7JBEJPIE
  • US House passes the Hong Kong Human Rights and Democracy Act $DXY $USDCNH
  • Since the metal’s peak on September 4, the total ETF holdings of #silver have fallen by 19.4 million troy ounces. Get your market update from @PeterHanksFX here:https://t.co/vaNAQE2wTm https://t.co/ycFfYCBYxN
  • RT @LiveSquawk: US House Approves Bill Requiring Regular Reviews Of Hong Kong's Special Financial Status, Sends To White House
  • Precious Metals Update: #Gold 1471.50 (-0.07%), #Aluminum 1731.00 (-0.40%), and #Copper 5875.00 (+0.77%). [delayed]
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.02% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.06% 🇳🇿NZD: -0.21% 🇨🇦CAD: -0.27% 🇦🇺AUD: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/AUNGS781ie
  • Canadian Minister of Foreign Affairs Freeland says hard work on USMCA ratification being done $CAD
  • While $XAG might enjoy a bump if risk aversion picks up over the next few days, I think the medium-term trend lower remains intact Read more - https://www.dailyfx.com/forex/market_alert/2019/11/20/Silver-Price-Forecast-XAGUSD-May-Fall-Further-Despite-Risk-Aversion.html?CHID=9&QPID=917701 https://t.co/TkkZgHVnDW
Now Could Be The Time to Go Long USD/JPY

Now Could Be The Time to Go Long USD/JPY

2017-06-06 15:23:00
Martin Essex, MSTA, Analyst and Editor
Share:

USD/JPY fell sharply Tuesday, dropping to a low of 109.28 from a recent high of 114.39 on May 11. But that trend could be about to change.

The strength of the Japanese Yen in Tuesday’s session has been widely attributed to “risk off” sentiment in the markets ahead of the UK General Election on Thursday and the testimony to Congress by former FBI director James Comey the same day, as well as concerns about the dispute between Qatar and other Arab countries over the Gulf state’s alleged support of Iran and Islamist groups.

In addition, the US Dollar is still under pressure from Friday’s news of a much weaker than expected non-farm payrolls number for May, while the Yen has been boosted by news that Japanese cash wages rose by a stronger than expected annual 0.5% in April, the biggest rise in four months.

Yet those worries will likely dissipate. The ruling Conservative Party remains the strong favorite to win the UK election despite a narrowing of its lead in the opinion polls and Comey’s testimony will only be important for the markets if it distracts US President Donald Trump from his economic plans. Qatar is not a major oil producing nation. The chances are, therefore, that USD/JPY will rally.

Chart: USD/JPY Daily Timeframe (2017 to Date)

Now Could Be The Time to Go Long USD/JPY

Chart by IG

Technically, the late April gap on the daily chart has been filled by the latest downmove and there is strong support above 108 from the lows registered a few days earlier. By contrast, there is little resistance ahead of the 1.1050-1.1200 trading range in place before the latest fall, and any break above those levels would bring the recent highs around 1.1430 back into play.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

If you’re looking for more trading ideas, check out our Trading Guides; they’re free and updated for the second quarter of 2017

Also check out the DailyFX Economic Calendar and see what live coverage of key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.