USD/JPY remains volatile, US PCE Price Index nextThe Japanese yen has hit the brakes on this week’s impressive rally. USD/JPY is trading at 154.34 in the European session, up 0.30% on the day. On Thursday, the yen climbed as much as 1.3% but gave up all of those gains after the strong US GDP report. Still, the yen is up 1.9% this week.
Tokyo Core CPI rose to 2.2% y/y in July, a notch higher than the 2.1% gain in June and matching the market forecast. This is the third straight acceleration and the highest level since March. Higher electricity prices drove the gain. Earlier this week, service inflation for businesses rose to 3% in July, up from 2.7% in June and above the market forecast of 2.6%. This was the highest level in 33 years.
The Bank of Japan faces a tough task and must decide whether to maintain policy or deliver a rate hike at next week’s meeting. It’s a close call as to what decision the central bank will make and Bank officials can be expected to maintain radio silence.
There are strong arguments for both sides. Inflation and wage growth have been moving higher which would support a rate hike. As well, a rate hike could give a boost to the yen, which has been trading at multi-year lows. On the other hand consumption remains weak and a rate hike would only further dampen consumer spending.
Later today, the US releases Core PCE Price index, which is the Federal Reserve’s preferred inflation measure. The index is expected to rise 0.1% m/m in June, matching the May figure. The PCE Price index is expected to ease to 2.5% y/y, down a notch from 2.6% in May.
USD/JPY has pushed past resistance at 154.03 and is testing resistance at 154.39, followed by 154.68
153.74 and 153.38 are the next support levels
Uadjpy
USDJPY possible head & shoulder pattern!!Hello traders, this is the full breakdown of this pair. We will take this trade if all the conditions are satisfied as discussed in the analysis. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover in my next analysis.
Don't miss the great sell opportunity in AUDJPYTrading suggestion:
. There is still a possibility of temporary retracement to suggested resistance line (73.17). if so, traders can set orders based on Price Action and expect to reach short-term targets.
Technical analysis:
. AUDJPY is in a range bound and the beginning of downtrend is expected.
. The price is below the 21-Day WEMA which acts as a dynamic resistance.
. The RSI is at 33.
Take Profits:
TP1= @ 72.40
TP2= @ 71.80
TP3= @ 70.90
SL: Break Above R2
Possible trend shift in AUDJPY – going long BUY
75.228 - 75.483 Add to Watch List
Signal ID: 69151
Time Issued: Tuesday, 05 November 2019 09:00:16 GMT
Status: open
Entry: 75.228 - 75.483
Limit: N/A
Stop Loss: 74.846
The Tidal Shift Strategy has just bought AUDJPY at 75.356. The system recommends entering this trade at any price between 75.228 and 75.483. The signal was issued because our Speculative Sentiment Index has hit its most extreme negative level for the past 145 trading hours at 1.925, which suggests that the AUDJPY could be trending upwards.The 14-period Average True Range on a daily chart is 0.102, so the stop loss has been set at 74.846. This stop loss order is a trailing stop that will move up as the market moves up. There is no profit target for this strategy. We expect to be closed by the stop loss.Tidal Shift is a trend trading strategy that aims to catch shifts in trend using trader sentiment as an indicator. The strategy looks to buy when the Speculative Sentiment Index reaches its lowest value for the past 145 trading hours, and looks to short when it reaches its highest value for the past 145 trading hours.
USDJPY short by Elliot theoryBy Elliot theory we already had 3 up waves and 2 correction waves (magenta arrows) up moving. And now we are on the down moving (black arrows). And now are ready for last downside wave. Resistance level is blue rectangle. So probably i'll in on 103.00
TP1 - 102.400
TP2 - 101.750
TP3 - 100.570
If price will cross top green line, it will cancel this forecast
thank you and any comments are welcome
Correlation Trade Between USD/CAD & USD/JPYThe trade: Long USD/CAD & Short USD/JPY.
A nice correlation trade is setting up between USD/CAD & USD/JPY. The spread in the correlation is currently 600 Pips, over the past year the max spread has been approximately 1,200 Pips.
We will be taking 1/4 our intended position size, if the spread continues to widen we will slowly add to our position. There is a good chance we see that happen over the next few days as the US & Canada both have unemployment numbers scheduled for release. If our timing happens to be accurate today and the spread begins to narrow before that data is released we will book our profit.