Going long USD/JPY

I looked at being long USD/JPY at 101.90 on April 9, looking for a move to 103.00. 

The pair did fall to a low of 101.33, however it has come back into favour, with traders happy to buy the dip in the hope of more stimulus from the BoJ in July.

Momentum is behind the trade right now, so traders are likely to move stops on the trade to break-even (101.90). A break of 102.73 (the 50% retracement of the April sell-off) is needed for the pair to rally to 103.00.

Fundamentally, it’s hard to see significant upside for the pair in the short term, unless we get a real sense of further easing from the BoJ, especially with the Fed pushing back on rate hike expectations of late. There don’t seem a lot of short-term drivers, with US data fairly light this week and Japanese CPI (traders will focus on the Tokyo print) on Friday likely to be pushed up predominantly on factors derived from the April 1 sales tax hike.

IG Charts

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.