Buy USDJPY | Current Sentiment

Posted On 22 Apr 2016

Our trade call is to buy USDJPY with a stop below the lows at 107.65 and hold the position into next week’s key risk events from the Fed and BoJ. Before entering, traders must accept the risk of holding a short JPY position over the weekend, where any unexpected major risk-off event could see yen pairs gap lower on Monday.

Current Sentiment

The Asia-Pacific session was again very light on economic data. Japanese Flash Manufacturing PMI missed estimates at 48, however the Tertiary Industry Activity Index slightly beat expectations at -0.1%. Both data points are very low impact.

The yen weakened suddenly in recent trade as reports emerge that the BoJ are considering negative rates for its lending program for financial institutions. USDJPY rallied nearly 85 pips in 15 minutes to pop above the 110 handle. Yen pairs are likely to be supported heading into next week’s BoJ meeting.

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About the Author

Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"]www.facebook.com/JarrattDavisForex/[/social] [social type="twitter"]https://twitter.com/jarrattdavis[/social] [social type="google-plus"]https://plus.google.com/+JarrattdavisForexTrader/[/social] [social type="youtube"]https://www.youtube.com/user/JarrattDavisForex[/social]