The USD/JPY rally continues

While the world is watching Scotland and the sterling, Japan has been the silent achiever today, with further yen weakness the dominant theme.

Source: Bloomberg

A further drop in unemployment claims helped keep the greenback steady and maintain its gains against the yen. USD/JPY has rallied above ¥109.00 and is now firmly in unchartered territory heading into the end of the week.

Highs from August 2008 were above ¥110 (¥110.67) and that’ll be the next target. A break of this level would see the pair trade at December 2007 levels. The Nikkei has rallied and is headed to January highs at 16320.

This trend in USD/JPY and the Nikkei is likely to continue as investors buy the dips. A concern is the fact the RSI suggests USD/JPY is overbought at the moment. I would suggest traders already long should continue to trail stops in order to maximise potential from the position.

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.