SaxoTV

Lambert: Dangerous depreciation for the JPY

328 views
October 30, 2014 dollar, dollar yen, fed, fed bond buy back program, fed bond buying, fed chair, fed chairman, fed chairwoman, fed funds rate, fed meeting, fed minutes, fed news, fed policy, fed rate decision, fed rates, fed stimulus, fed taper, fed tapering, federal, federal government, federal open market committee, federal policy meeting, federal reserve, federal reserve rate, federal reserve rate hikes, federal rserve, federal rseserve, federalreserve, forex, fx, fx crosses, fx forex, fx investing, fx market, fx markets, fx options, fx spot, fx strategy, fx trade, fx trade idea, fx traders, fx trades, fx trading, fx trends, fx volatility, fx volatitily, japan, saxo, saxo bank, saxo bank saxo tv, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, trade idea, trade view, trading, trading fx, trading idea, trading risks, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, yen, yen dollar

The US Federal Reserve’s confidence in the recovering US economy ignited a rally in USD against a wide swathe of currencies. The Fed dismissed the market’s recent volatility and the growth challenges facing Europe, instead choosing to focus on the revitalization of the US labour market. Clive Lambert from FuturesTechs has been monitoring the USDJPY cross and believes the dollar will continue to strengthen.

The yen had stabilized, range bound around the 108.00 figure, until the Fed’s announcement. Haruhiko Kuroda, Governor of the Bank of Japan, encouraged the yen’s depreciation and the positive impacts of a weaker currency for exporters. The debate surrounding an ideal trading range for USDJPY varies between USD 95 – USD 110, with any move above USD 110.00 creating unease in the domestic market according to Governor Kuroda. Unfortunately for the yen, the positive outlook struck by the Fed means the dollar could continue to trade at the higher end of that range.

Clive is looking to buy USDJPY at 108.50 – USD 108.60, the halfway point of the large green candle formation currently posted on the daily chart. He is targeting a move higher towards: USD 109.60, USD 110.00, and USD 110.10. A stop can be placed below 108.20.

Disclaimer

Saxo Bank Group provides an execution-only service. All information provided on Tradingfloor.com is solely for general information. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com.

Please read our notification on

Non-independent investment research disclaimer

Full disclaimer