FX Trade Journal

Yen continues to prove its strength as political risks drives investments into Japanese bonds and may outperform the US-Dollar in the short term in the build up to the FOMC. Should the Fed raise rates, the yen could be subjected to selling pressure as the rate differential widens. Abatement of political risks needed to curb Yen strength. Upcoming support level at 109.35

Indecisiveness in ending QE stimulus by BoJ and talks of further rate decreases has led to the Yen weakening. Amidst May month Greenback weakness it is anticipated that the USDJPY can test 110.00 support before the Fed rate hike in June  

In the last week, the BoJ has signalled what seems as the end of it's extensive QE program as inflation picks up across Japan. With the mildly weaker Greenback we can expect some of the strongest gains for Yen in the upcoming weeks. Key support levels at 112.00 and 111.50 Upcoming Trades Entry to long @ 112.00 with t/p 113.40 and s/l @ 111.50 Entry to short @ 113.40 with t/p @ 111.50 and s/l @ 114.50

Driven by strong sentiment in the US Dollar on a bet for an upcoming rate hike, the USDJPY pair is set to extend to the upside to the 116.00 level.

USDJPY may extend up to 112.00 level as the US Dollar rallies ahead of a highly probable interest rate hike and an outlook for major stimulus plans by the Bank of Japan. Trade : Entry to buy @ 104.20 with T/P @ 111.50

With unemployment claims at 43 year lows signalling a US Dollar   rally on strong jobs data, and ultimate weakness in the Yen due to an anticipated expanded stimulus package by the BoJ; the  USD / JPY   pair is set for upwards  momentum  and will likely retest its  3-month  high in the near future. Trade: Entry to buy @ 104.00 with T/P @ 106.50 and S/L @ 103.00

USD/JPY Whilst interest rates were left unchanged by the Fed in September, the Chairwoman Janet Yellen has commented that the case for a rate hike this year has strengthened, and most importantly, three members have voted in favour of an immediate raise. In anticipation, U.S government bond yields are moving higher as investors position themselves for the upcoming hike. Expectations of easing by the Bank of Japan along with an outlook of a Fed rate rise, the upcoming FOMC minutes should support dollar strength against the Yen. Trade: Entry to buy @ 103.75 with T/P @ 104.50 and S/L @ 103.50 (3:1 risk-reward)