USDJPY: under pressure against the background of a strengthening yen

USDJPY
Jan. 12, 2016, 09:25
Sell on a level breakthrough of 116.69 with 116.09 target. Stop loss = 117.19.

Reason for the trading strategy

After a concluded adjustment, investors are buying the protective yen again. It is also supported by the internal macroeconomic statistics. In December, Japan's consumer confidence index rose from 42.6 p. to 42.7 p., and was higher than the forecast of 42.3 p.

USDJPY: under pressure against the background of a strengthening yen

USDJPY: under pressure against the background of a strengthening yen

USDJPY
Jan. 7, 2016, 10:54
Sell on a level breakthrough of 117.64 with 116.09 target. Stop loss = 118.14.

Reason for the trading strategy

Yesterday, the World Bank lowered the forecast for global growth in 2016 from 3.3% to 2.9% due to the deterioration of prospects for emerging markets. In particular, it predicts a slowdown in China's GDP form 6.9% to 6.7%. The news are deterring investors from buying the risky assets and contribute to the growth of the yen.



USDJPY, Daily

USDJPY: under pressure against the background of a strengthening yen

USDJPY: under pressure against the background of a strengthening yen

Sell on a level breakthrough of 120.25 with 119.75 target. Stop loss = 120.75.

Reason for the trading strategy

The Bank of Japan refrained from any additional stimulus measures maintaining the amount of asset purchases at the level of 80 trillion yen a year. The news has supported the yen significantly. According to the regulator's forecasts, the inflation rate of 2% will not be achieved in the first, but in the second half of the 2016 fiscal year. According to our estimates, inflationary pressures in Japan will start growing steadily in Q1 2016. Future growth of inflationary pressures in the country will not require the asset purchases program to be expanded in 2016.

USDJPY: under pressure against the background of a strengthening yen