USD/JPY Fundamental Daily Forecast -Low Volume Expected Due to Bank Holiday; Watch Stocks for Guidance

James Hyerczyk
USD/JPY
USD/JPY

The Dollar/Yen is trading slightly higher early Monday. Volume and volatility are relatively low since today is a U.S. bank holiday. Last week, the price action was primarily driven by the sure in U.S. Treasury yields. With the Treasury market closed, traders will be rudderless. They may seek direction from the stock market which is open, however.

At 0312 GMT, the USD/JPY is trading 113.878, up 0.154 or +0.14%.

Japan is on a bank holiday also which only doubles the chances of a quiet trading ession. Low volume could lead to volatility, however, if a renegade trader decides to try to take control. Try to avoid getting caught on the wrong side of an attempted breakout. This type of move tends to fail under thin trading conditions. It’s probably best to keep your powder dry today and wait for the banks to reopen on Tuesday.

Forecast

There are no reports scheduled for Monday so you’re on your own. Traders may decide to follow the price action in the U.S. stock market because of the carry trade. A steep sell-off in U.S. equity markets could drive investors into the safe-haven Japanese Yen.

Technically, the main trend is up. A trade through 113.522 will change the main trend to down. A move through 114.580 will signal a resumption of the uptrend.

The short-term range is 112.555 to 114.580. Its 50% to 61.8% retracement zone at 113.568 is support. This zone has held as support the last three sessions.

The main range is 110.379 to 114.580. If the trend changes to down then the selling may continue into its retracement zone at 112.480 to 111.984.

The major upside target this week is the November 6, 2017 main top at 114.728. This is a potential trigger point for an acceleration to the upside.

With the Treasury market and U.S. and Japanese banks closed today, it is highly suggested that do don’t try to press the market hard in either direction unless you have a solid exit strategy before you trade. This is because it’s easy to get caught in a whip-saw trade due to low volume.

Without any reports, the price action is likely to be dictated by the movement in the U.S. equity markets. Further downside pressure could keep a lid on any rallies in the USD/JPY because of the carry trade.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US