Market Analysis: USD/JPY stabilises and holds above 111.00 – downside potential limited?

  • master
  • 14.03.2019
  • Comments Off on Market Analysis: USD/JPY stabilises and holds above 111.00 – downside potential limited?
<p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”March 13 economic events calendar” rel=””></a></p><p><em>Source: Economic Events March 13, 2019 – </em><a href=””><em>Admiral Markets’ Forex Calendar</em></a></p>
<p>After last Friday’s wear NFP reading, the USD/JPY saw a short push below 111.00. Over the last few days it has stabilised, but due to low volatility in equities, it seems as if the potential on the downside for the USD/JPY is limited. </p><p>Technically speaking, another attack on the region around 112.00 remains an option as long as we trade above last Friday’s lows of around 110.80. Above 112.00, further gains up to 112.30/50 become likely, particularly if such an upwards push would not only be driven by JPY weakness, but also the pullback in 10-year US Treasury yields above 270 basis points. </p><p>On the other hand, in the current market environment, one should carefully watch any comments from the Trump administration regarding the current strength in the US dollar (note: the USD index future is currently eyeing a key resistance zone around 97.50/80 points, where a break higher would match the highest readings since April/May 2017). </p><p>That said, every push below 110.80 activates the region around 110.30 as a first target on the downside. </p><p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”USD/JPY index 4 hour chart” rel=””></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 H4 chart (between December 12, 2018, to March 12, 2019). Accessed: March 12, 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=”” alt=”Download MetaTrader 5 and begin trading today!” rel=””></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=””><em>risks</em></a><em>.</em>