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USD/JPY Signal - Japanese Intervention - Aug 18 2016

Signal details
Entry Price: 
100.00
Close Price: 
99.92
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 2 ratings

In the last three days the USD/JPY pair has been going down (and now is in the 100.00 area) however we don’t expect for this status quo to continue because of the following reasons. First the fundaments are pointing towards a Bank of Japan intervention, with the 100.0 level seen as a key point for the central bank to start selling yen aiming to lower the price of Japanese goods and make the Japanese economy more competitive.

This would be good for Japanese exporters too as we are noting their strong demand by buying into the 99.60-70 area which is strongly supported at this time. All this may lead for the USD/JPY to close the day above the 100.00 level. This is why it would be appropriate to evaluate a target price of 100.00. We would be buying daily calls at this level aiming for the expiration at 20:00 GMT.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.