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- May 23, 2014

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 fact that we broke above the top of the hammer from the Wednesday session doesn’t surprise me much though, as we have been so well supported at the 101 handle. This is simply looks like the market is ready to continue consolidating between the 101 level on the bottom, and the 103 level on the top again. With that, I see no reason whatsoever why we should continue to go higher, although it’s probably going to be a bit of a grind at this point.

It’s also possible that we are looking at the summer range. It would not be uncommon for this pair to bounce back and forth for a couple of months while liquidity drains out, but keep in mind that I still have a potentially upside move in mind with this marketplace. After all, the Bank of Japan is looking to keep the value of the Yen down, and they do continue to have a very easy monetary policy. On the other hand, the Federal Reserve looks like it’s ready to start tapering again, and that should continue to tighten monetary policy. In that scenario, this pair should continue to rise over time.

I am short the Japanese yen.

I am currently short the Japanese yen. However, it’s not in this particular pair because there is no swap. After all, if you’re going to get paid to hang onto a trade, that’s a better way to go than one that doesn’t do any swap. There will come a time where this pair does pay swap again, and when it does you can fully expect this market to go higher. The meantime, a lot of the Yen weakness in this market is probably more of a “knock on effect” from other currency pairs. Full disclosure, I am short of the Japanese yen against the Turkish lira, and the Norwegian krone. Both of those pairs offer a positive swap.

USDJPY Daily 52314

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