Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/JPY Daily Outlook- Nov. 8, 2013

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The USD/JPY pair went wild during the session on Thursday as a reaction to the European Central Bank cutting rates as a complete surprise to the markets. In this highly risk sensitive currency pair, we saw a massive swing in one direction, followed by a massive swing in the other. After all, the US dollar gained against the Euro, and that had a ripple effect through the entire currency markets as the Dol lar gained against the Yen. However, by the end of the day several traders would have been worried about the global growth scenario, and that of course had them running to the relatively safe arms of the Japanese yen.

You have to remember that much of the world global finance is actually funded by Japanese banks. That's what the low interest rate does for large hedge funds: gives them the opportunity to borrow at almost nothing, and then gets interest rate differential in places like New Zealand, Australia, and even more exotic places like Jamaica. When you are guaranteed a 7% return that gets very interesting when you're talking millions upon millions of dollars.

Nonfarm payroll numbers will write this market yet again.

I believe the nonfarm payroll numbers will write this market yet again, which they typically do anyway. This is a particularly sensitive time for the market so as we try to figure out whether the world global growth is slowing, or if it simply going to be the United States by itself again. My suspicion is that the jobs numbers will be very good later today, and we will have a scenario where the Federal Reserve, much like other central banks around the world, will not be able to do anything as far as tightening of monetary policy anytime soon.

Going forward, I expect this pair to eventually go higher, but it will be a while before we gain any serious traction. Unfortunately, I think we’re going to see more continued choppiness in this market which will simply be a great way to drain your trading account. Having said that, if any significant fall from this point though begs buying on signs of support.

USDJPY Daily 11813

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews