Update: potential USD/JPY trade

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

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.

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.