The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
This manufacturing print was the first gain in manufacturing in seven months. Treasuries sold off and the USD gained ground against the yen, euro, pound and aussie. USD/JPY traded as high as 124.92 (12-year high) and this pair seems unstoppable at the moment. The momentum is clearly in the bulls favour and traders are quite happy to hold on to positions. The key break to the upside for the pair took place on May 19 and it’s been one-way traffic ever since. Traders already in a long position will probably be looking to trail stops higher and keep tracking the move. For traders not already in the position, pullbacks into 122.00 present the best opportunities for longs. There is also minor support in the 124.00 region to keep an eye on. Heading into Friday’s payrolls numbers I feel traders will be eyeing buying opportunities.