Greenback focuses on data

USD/JPY has been oscillating around the ¥120.00 level for a while and it just seems the directionless period is slowly coming to an end.

Source: Bloomberg

The pair is back below ¥120.00 today and is about to test an uptrend that’s been in place since October last year. A rejection of ¥121.00 has triggered a bout of short term weakness and traders will be looking to see if support holds in the ¥119.50 region.

While there isn’t much happening on the JPY side of the equation this week, there is plenty of activity on the USD side. On the calendar today we have retail sales, PPI, the NFIB small business index reading and business inventories data.

Whichever way the data swings, it is likely to have an impact on the greenback. Should the data disappoint, resulting in a close below ¥119.50, then we could be in for some USD/JPY unwinding. The rest of the week is also likely to bring further volatility as we get other key readings, including US GDP. If ¥119.50 is broken, then a move back below ¥119.00 could be on the cards.

Click to enlarge

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.