USD/JPY – Yen Gains Momentum Amidst PMI Data Release


USD/JPY (Short Position)

Timeline : 1-2 days – Sell signal

  • Take-profit: 128.50
  • Stop-loss: 132.00

USD/JPY (Long Position)

  • Buy Signal: 131.35
  • Take-profit: 134.00
  • Stop-loss: 129.50

The US Dollar gained against Japanese Yen on Tuesday morning as the Pair was gaining some stability with risk-on sentiment. The exchange rate moved up to 130.58 which is a significant move from last week’s low of 128. But after the release of PMI data, the Yen moved up against USD once again. The exchange rate fell once again. After forming a descending regression channel, the pair is moving towards an upper level at the moment. An analysis using the MACD indicator suggests that there are 2 possible outcomes of this movement.

The sellers will be targeting the lower side, and this will result in a fall in the prices. So, for those with this outlook a short position will be the way to go. Another possibility that we see is that the pair may go through a reversal, which means that the USD may regain its strength against Yen in the coming days. So, bulls may set a buy-stop at 131.35 and wait for the pair to continue the bullish trend.

Forex Weekly Forecast

  • BTC/USD: A rally is expected with the bullish behaviour of the pair.
  • XAU/USD: The uptrend may continue as the pair continue to book gains for the fifth time in the week.
  • EUR/USD: The pair continue to swing up and down compared to the previous week in which we witnessed solid gains.
  • USD/JPY: The pair likely to remain bearish as the price falls below 130.00
  • GBP/USD: The British Pound continues to move up against the US Dollar.
  • AUD/USD: The pair strongly react to the consumer inflation figures and rallies.
  • USD/CAD: Volatility is expected with the rumours regarding upcoming interest rate hikes.
  • USD/CHF: The pair recovers from the daily low range and reached 0.9220
  • EUR/GBP: The pair moves up to a weekly high, signalling a possible rebound
  • EUR/CHF: An opportunity to short as the pair showcases a bearish trend.

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