USDJPY can stay above the 100 hourly moving average
That USDJPY
USD/JPY
USD/JPY is the currency pair that includes the United States Dollar (symbol $, code USD) and the Japanese Yen of Japan (symbol ¥, code JPY). The pair rate indicates how many Japanese yen it takes to buy one US dollar. For example, if the USD/JPY is trading at 100.00, it means that 1 US dollar is equal to 100 Japanese yen. The US Dollar (USD) is the world’s most traded currency, while the Japanese Yen is the world’s third most traded currency, resulting in an extremely liquid pair and very tight spreads, often trading within the 0 Pip to 2 pip remain forex brokers. Although the USD/JPY range has not traditionally been particularly wide, the lack of major price action often associated with other JPY pairs makes trading easier. This is especially true for short-term traders, although without offering a great pip potential. Despite being the second most traded pair in the world, the USD/JPY is not as popular with retail traders as one might think. The pair have a reputation for being “boring,” although that’s not entirely true. Trading USD/JPY The JPY is considered a safe haven and investors often add exposure after periods of uncertainty or market-related failures. Since both the US and Japan are highly developed economies, there are several key factors affecting the value of both currencies. This includes a range of economic indicators such as gross domestic product (GDP) growth, inflation, interest rates and unemployment data. The monetary policies of the US Federal Reserve and the Bank of Japan are also important determinants of the value of any currency.
USD/JPY is the currency pair that includes the United States Dollar (symbol $, code USD) and the Japanese Yen of Japan (symbol ¥, code JPY). The pair rate indicates how many Japanese yen it takes to buy one US dollar. For example, if the USD/JPY is trading at 100.00, it means that 1 US dollar is equal to 100 Japanese yen. The US Dollar (USD) is the world’s most traded currency, while the Japanese Yen is the world’s third most traded currency, resulting in an extremely liquid pair and very tight spreads, often trading within the 0 Pip to 2 pip remain forex brokers. Although the USD/JPY range has not traditionally been particularly wide, the lack of major price action often associated with other JPY pairs makes trading easier. This is especially true for short-term traders, although without offering a great pip potential. Despite being the second most traded pair in the world, the USD/JPY is not as popular with retail traders as one might think. The pair have a reputation for being “boring,” although that’s not entirely true. Trading USD/JPY The JPY is considered a safe haven and investors often add exposure after periods of uncertainty or market-related failures. Since both the US and Japan are highly developed economies, there are several key factors affecting the value of both currencies. This includes a range of economic indicators such as gross domestic product (GDP) growth, inflation, interest rates and unemployment data. The monetary policies of the US Federal Reserve and the Bank of Japan are also important determinants of the value of any currency.
Read this term has seen price action down, up and down again today.
The Asian session high found sellers against its 100 hourly moving average (blue line on chart above). Subsequent move lower saw buyers cave in near a swing area between 128.63 and 128.736. The price bounced off this area and moved back towards the 100 hourly moving average line.
The recent move back up saw the price surge above the 100 hourly moving average at 129.61 only to find sellers near the Asian session high at 129.632. The inability to maintain momentum has once again turned buyers into sellers. The current rate is trading at 129.11.
Traders need to reach and stay above the 100 hourly moving average but battle the potential for lower stocks and lower yields now as investors move into the relative safety of the US debt
US stocks to open lower according to futures markets:
- The Dow industrial average is projected down -55 points
- The S&P index is projected down 17.4 points
- The NASDAQ index is projected down -72 points
Yields are lower in the US bond market, with the 10-year yield at 2.899%, -2.3 basis points on the day.
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