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Trading Outlook – USD/JPY

Jarratt Davis
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www.jarrattdavis.com

Originally Updated: 06:55GMT

Currency Pair: USD/JPY

Sentiment: Bullish

Market focus:

In today’s trade set up we will be focussing on short term buying opportunities on the USD/JPY.

Fundamentals:

The JPY plunged across the board reaching a six year low against the USD after the BOJ surprised the market with further easing, increasing their QE programme by 10 trillion YEN, as they push towards their target inflation rate of 2 percent.

With the Fed having a more hawkish outlook over the US economy following an improving labour market investors will be focussed on buying opportunities in USD/JPY.

Technicals:

We have a nice confluence zone at 109.95-109.85. This should offer short term support for any pullback.

Stop loss could be placed at 109.55

First take profit target: Open for now

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