USD/JPY Sideways Pattern - Brace for a Breakout Pattern
|USD/JPY was opened at 108.474 and has placed a high of 108.702 and a low of 108.247; the pair is currently trading at 108.696. The pair has shown a Bullish Trend for the day.
At 10:00 GMT, the Core Consumer Price Index from Bank of Japan released as 0.3% for September in comparison to August's 0.4%. The second-best performing G-10 Currency for the year-to-date basis is Japanese Yen after the 1st Canadian Dollar. Yen performed well In Q2 and Q3, which had more risk-off market sentiment. In the recent Q4, where global financial market risk is emerging, the Yen is likely to drop and cause the upward movement in USD/JPY.
In the meantime, the EU and UK have secured a Brexit deal, and it has been passed to Parliament for further processing while on Trade talks front, the US & China also has scored a partial deal which is to be signed in APEC meeting in Chile on 16-17 November.
However, the partial deal has left many aspects still to be discussed and agreed upon between both countries. And on Brexit front, even though the chances for no-deal Brexit are faded, the uncertainty remains over the future trading relationship of EU & UK.
So, we can say that risk appetite for Japanese Investors has not entirely shifted. It’s just scope for continuous upward movement for USD/JPY has been limited. The Fed is likely to cut its rates a third time this year in the next Meeting, which has also limited the upward trend of USD/JPY.
| Support | Pivot Point | Resistance |
| 108.39 | 108.55 | 108.82 |
| 108.12 | 108.97 | |
| 107.69 | 109.4 |
USD/JPY - Trade Setup
Sell Below 108.750
Take Profit 108.300
Stop Loss 108.900
Buy Above 108.250
Take Profit 108.600
Stop Loss 108.000
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