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USD/JPY Forecast 19 May 2016

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USD/JPY Forecast 19 May 2016
5/5 of 2 ratings

The Japanese yen has met our expectations and showed a strong growth.

The strong Japanese economic data and unexpectedly aggressive FOMC protocol helped the pair USD/JPY.

The GDP for the 2nd quarter of the 2nd assessment: an increase by 0.4% vs. 0.1%, the annual assessment 1.7% against the expectations of 0.2% -0.3%. The GDP private consumption increased by 0.5% vs. 0.2% for the quarterly period. This means that talks about the recession are meaningless.

Today, the good news continues. The core machinery orders increased by 5.5% vs. 0.5%.
Today, two key figures from the Fed, William Dudley and Stanley Fischer will have speeches. The US will also provide data on Philadelphia Fed Manufacturing Index, which is expected to increase by 3.5 against last fall by 1.6%.

How to trade

We would buy call options if the pair rises above 110.85.

Asset: USD/JPY
Direction: Call
Target price: 110.85
Expiry time: 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.

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