USD/JPY getting a lot of attention

USD/JPY has traded through the August pivot high of ¥104.32, a level the market has been happy to sell into since the start of October.

Source: Bloomberg

A daily close (ie. 08:00 AEDT) above this figure would open up a move into ¥107.00, so I would be looking at long positions here on this technical breakout and would look to trail my stop below the 20-day moving average (EMA), which currently sits at ¥103.54.

Of course, there is much hard work for USD/JPY to do and, if we look at implied options volatility, we can see that if it does rally from here it is likely to be a grind. However, this break is getting a lot of attention from traders this morning and should be on the trading radar.


IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.