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

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  • 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=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” rel=”” alt=”USD/JPY economic events calendar”></a></p><p><em>Source: Economic Events 01 March 2019 – </em><a href=””><em>Admiral Markets’ Forex Calendar</em></a></p><p>In last Monday’s weekly market outlook, we wondered “<a href=””>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=””>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=”” 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=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” rel=”” alt=”USD/JPY 4-hour chart”></a></p><p><em>Source: Admiral Markets </em><a href=”″><em>MT5</em></a><em> with </em><a href=””><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=”″><a href=””><img style=”width:auto;” class=”img-responsive” src=”” 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. 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