Is it worth selling a dollar against the yen?
March 20, 2019 1:22 pmVideo
Latest News
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
All attention for today will focus on the US Federal Reserve and more specifically to the long-awaited press conference of the head of the US central bank, Jerome Powell. No one is expecting rate changes and market participants are interested in both of the economic forecasts and Powell’s comments.
Considering the current situation, we need to monitor every step of the dollar today. We should also not lose sight of the dynamics of the yield of US state bonds. In the past few weeks, the USD/JPY pair almost never leaves the narrow range of 111.00-112.00. For some unknown reason, the dollar decided not to react to the political baton of successive polls on the UK leaving the EU. In addition, he ignored the worst report in 17 years on China’s industrial production, as well as the decision of Donald Trump to postpone a meeting with his Chinese counterpart Xi Jinping. Recall that the audience was expected to sign a bilateral trade agreement between the countries.
It seems that traders needed other fundamental drivers and Powell’s upcoming press conference is more than suitable for this role. Market participants believe that the main blow to the dollar will be caused by Fed officials, who are likely to report on a wait-and-see attitude and unwillingness to multiply raise rates during 2019. An excellent prelude to such comments could be the deterioration of estimates of economic growth in America for this year, as a result of heightened risks in the sphere of world foreign trade.
The dollar in this situation will very quickly be among the outsiders with the potential for closing the day below 111.00.
What do analysts think?
Justifying the sale of the dollar against the Japanese yen at Westpac, taking a short position in the US dollar should be based on the fact that the spot market was not able to break through the resistance of 112.00-112.50, according to market strategists. The recommendation from Westpac is as follows: sale from 111.90 with a target at 110.10 and a stop order at 112.55.
Experts also named the reasons that prompted them to adhere to such a strategy, namely:
Meanwhile, the USD/JPY pair opened with growth today, testing the resistance level of 111.67. Some analysts do not exclude that in the future, the pair will move to 113.00 after a breakdown in this level.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: