Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Update: potential USD/JPY trade

The USD/JPY trade idea remains intact, with buyers happy to keep getting in on the dips.

US
Source: Bloomberg

Following on from my potential trade idea on Monday, USD/JPY is not far off from testing the ¥110.00 mark in the near term after having printed a high of ¥109.85 in overnight trade. The Tankan manufacturing and non-manufacturing index readings were mixed, with the manufacturing component showing an improvement while the non-manufacturing component contracted.

This reading didn’t cause much of a move in the yen as USD/JPY remained on its upward trajectory. On the USD side of the equation we are heading into the business end of the week. The ADP non-farm employment change and manufacturing PMI readings will set the tone for the pair. If we see some strong readings, the greenback would be in a good position to extend its gains. I remain happy holding on to the trade for now.

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.