Market Analysis: USD/JPY fights and wins back 111.00 – is this a flash in the pan?

  • master
  • 02.03.2019
  • Comments Off on Market Analysis: USD/JPY fights and wins back 111.00 – is this a flash in the pan?
<p><a href=”https://admiralmarkets.com/analytics/traders-blog/usdjpy-fights-upward”><img style=”width:auto;” class=”img-responsive” src=”https://fxmedia.s3.amazonaws.com/articles/remote/622d3dd5d6f5a7869f3dc7bdaf457637.png” style=”” rel=”” alt=”USD/JPY economic events calendar”></a></p><p><em>Source: Economic Events 01 March 2019 – </em><a href=”https://admiralmarkets.com/analytics/forex-calendar”><em>Admiral Markets’ Forex Calendar</em></a></p><p>In last Monday’s weekly market outlook, we wondered “<a href=”https://admiralmarkets.com/analytics/traders-blog/usdjpy-bucks-correlation”>USD/JPY and Gold – correlation, where are you?</a>” And even though volatility was subdued over the last few days of trading, USD/JPY started to gain some momentum after initially failing to regain 111.00. </p><p>Interestingly enough, Gold didn’t take on further momentum on the upside, but instead traded back towards its potential <a href=”https://admiralmarkets.com/analytics/traders-blog/gold-bullish-2019-bounce”>long-trigger on the daily time-frame around 1,322/325</a> USD/ounce, while 10-year US Treasury yields were nearly unchanged over the last days. </p><p>The combination of the news that US president Trump and North Korean leader Kim <a href=”https://www.bloomberg.com/news/articles/2019-02-28/trump-says-no-rush-on-nuclear-deal-as-kim-answers-questions” target=”_blank”>failed to reach an agreement</a> in Hanoi, Vietnam, and the release of another set of weak economic data from the US, could push the USD/JPY to accelerate on the downside into the weekly close, especially if the currency pair drops below 110.30. With such a break, look to a first target on the downside of around 109.60 and below around 108.50 JPY. </p><p>After yesterday’s solid US GDP data (coming in at up 3.1% year-over-year on Thursday signalling the highest growth rate since Q2 2015) resulted in the USD/JPY closing above 111.30, it is definitely too early for USD/JPY bulls to bury their heads in the sand. If this break is sustainable, the path up to 111.70 and above 112.30 would be levelled. </p><p><a href=”https://admiralmarkets.com/analytics/traders-blog/usdjpy-fights-upward”><img style=”width:auto;” class=”img-responsive” src=”https://fxmedia.s3.amazonaws.com/articles/remote/be33df4dfbbc66517e90e295dabf74ff.png” style=”” rel=”” alt=”USD/JPY 4-hour chart”></a></p><p><em>Source: Admiral Markets </em><a href=”https://admiralmarkets.com/trading-platforms/metatrader-5″><em>MT5</em></a><em> with </em><a href=”https://admiralmarkets.com/trading-platforms/metatrader-se”><em>MT5-SE Add-on</em></a><em> USD/JPY 4-hour chart (between December 12, 2018, to February 28, 2019). Accessed: February 28, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In 2014, the value of USD/JPY increased by 13.7%, in 2015, it increased by 0.5%, in 2016, it fell by 2.8%, in 2017, it fell by 3.6%, in 2018, it fell by 2.7%, meaning that after five years, it was up by 4.1%.</p><p><a href=”https://admiralmarkets.com/trading-platforms/metatrader-5″><a href=”https://admiralmarkets.com/analytics/traders-blog/usdjpy-fights-upward”><img style=”width:auto;” class=”img-responsive” src=”https://fxmedia.s3.amazonaws.com/articles/remote/6cd0de99655f9cb763e0cdf599e0afd1.png” style=”” rel=”” alt=”Download MetaTrader 5 and begin trading today!”></a></a></p><p><em>Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li>This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.</li><li>Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.</li><li>Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations. </li><li>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</li><li>Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.</li><li>The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.</li><li>Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</li><li>The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.</li></ol><em>Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the </em><a href=”https://admiralmarkets.com/risk-disclosure”><em>risks</em></a><em>.</em>