USD/JPY: all eyes on the crucial support around 108.70 on Friday
Source: Economic Events May 31, 2019 - Admiral Markets' Forex Calendar
As we move into the weekly close, we should have a deeper look into the USD/JPY.
After 10-year US Treasury yields dropped to their lowest levels since 2017, and the potential of a risk-off hitting Equity markets after the SP500 CFD confirmed its double-top trend with the break below 2,800 points. This leaves the US equity index vulnerable to further losses (technically projected as low as 2,700 points), the focus in the USD/JPY switches to the crucial support region around 108.70/109.00.
While today's economic numbers are considered to be of lesser objective interest than next week's juicy economic docket. Disappointing US data could add further fuel to an accelerated unwinding of carry trades and capital backflows into the JPY.
If such a development arrives at the same time as a break below 108.70, a potential projected target on the downside can be found around 107.50. In the coming days, further losses as low as the January Flash Crash lows around 105.00 are a serious option.
Only if we can hold above 108.70/109.00, and go for reconquering 110.70 on a daily close, a stint as low as 105.00, the region around the January Flash Crash lows could be avoided, but seems unlikely.
Source: Admiral Markets MT5 with MT5-SE Add-on USD/JPY Daily chart (between May 2, 2018, to May 30, 2019). Accessed: May 30, 2019, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of the USD/JPY increased by 13.7%, in 2015, it increased by 0.5%, in 2016, it fell by 2.8%, in 2017, it fell by 3.6%, in 2018, it fell by 2.7%, meaning that after five years, it was up by 4.1%.
Investing in Forex with Admiral Markets
Admiral Markets offers professional traders the ability to trade with a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5 Supreme Edition!
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
- Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
- To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
- The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
- Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.
