Short term
Trade view / 28 November 2014 at 0:26 GMT

Awaiting USDJPY rally to new highs for the year

Managing Director / Technical Research Limited
New Zealand
Instrument: USDJPY
Price target:
Market price:

The USDJPY has been trading sideways over the last couple of days but Japanese Consumer Price Index data for October may prompt a break out. With inflation tracking at an annual rate that is only half the Bank of Japan’s target, expectations of even more easing will arise if today’s CPI number drops further. Earlier on, an auction of two-year government bonds is likely to produce a yield of around zero, if not negative.

There is no economic data out of the US today that will impact on this cross. Meanwhile the JPY has recently hit a 30 year low. My analysis of that situation is shown here

Management and risk description

The US dollar completed its requisite corrective structure on yesterday’s low about 117.25 in my targeted support, and whilst it is now holding at 117.50/117.25, I am looking for a rally back toward the 118.95 level (this month’s high), en route to 120.60 over the coming days.

If you would like an email notice each time Max posts a trade, then click here to follow him.


Entry: Buying USDJPY today at about the 117.65 level

Stop: 117.20 initially

Target: 50% at 119.30 and 50% at 120.40

Time horizon: Allow several days for both targets to be met

USDJPY daily chart (click to expand)

USDJPY daily chart

 Source: ThomsonReuters

— Edited by Robert Ryan

For more on forex click here.

Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more
nelsenkoff nelsenkoff
This comment has been redacted


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail