Thank you very much to all the new subscribers and for such lovely response on my Bank of England Interest Rate Decision Trade. This month has started and we are about to hit very high volatility, the traders are back and believe me we are about to see a massive break out.
As traders, we should know how to adjust according to different times of the year. Please feel free to download our eBook to learn a little bit more about seasonality.
Today, what I wanted to talk about is the USD/JPY. Now if you are new to FOREX trading, do not worry please just send me a message and I can show you how easy it is to trade currencies in a free 30-minute consultation.
Let’s talk about and understand what is going on with the Japanese Economy.
The Japanese economy did not grow in Q2 2016. Output remained flat and this was disappointing in comparison to projections of 0.2% growth. In annualized terms, the economy did grow 0.2% which is around 0.05% q/q. Q1 saw a decent growth rate of0.5% q/q.
Inflation which is always escaping the BOJ, it is also nowhere to be seen in this report. The GDP Deflator stands at 0.8% in yearly terms, far away from the 2% target. Business spending is down and consumer spending is not going anywhere fast.
The underwhelming numbers come from the preliminary report and could still change in the final read. For now, the non-existing growth rate means that the stimulus program published by the government is justified. Yet the reaction to the stimulus package is repeated also here: it is not enough to sell the yen or trading yen.
USD/JPY is sliding under 101 once again. The pair was struck by the poor US retail sales report and this one is not helping. Trading yen continues to attract safe haven flows and this is not about to change anytime soon.
As the chart shows, the 100.70 level is right around the corner. It provided support in early August. The round number of 100 is the obvious line below and it is followed by the post-Brexit level of 99.
IMPORTANT NEWS EVENTS TO KEEP AN EYE OUT FOR ON TRADING YEN AND THE YEN GOING FORWARD:
- Preliminary GDP: Sunday, 23:50. This is the key event of the week. Final GDP in the second quarter climbed 0.5%, matching the forecast. Preliminary GDP for Q3 is expected to be softer, with an estimate of 0.2%.
- Revised Industrial Production: Monday, 5:30. This manufacturing indicator declined 2.6% in May, missing expectations. The indicator is expected to rebound in June, with an estimate of 1.9%.
- Trade Balance: Wednesday, 00:50. Japan’s trade surplus improved to JPY 0.33 trillion in June, beating the forecast of JPY 0.24 trillion. The surplus is expected to drop sharply in July, with the estimate standing at JPY 0.14 trillion.
- All Industries Activity: Friday, 5:30. This minor indicator declined 1.0% in May, matching the forecast. The markets are expecting a rebound in June, with an estimate of a 0.9% gain.
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Platinum Trading Strategy for trading YEN in the Short Term
When someone first hears the words technical analysis, they tend to over think and start believing that trading is too difficult and time consuming. Believe me every single chart that you can see that I have published is very basic just outlining how the trade is produced.
We have a belief here at Platinum that –
Perfect Trade = Perfect Fundamental + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management
So with the above in mind, let’s talk about the pip tastic opportunities that are coming to the Platinum Trading Floor in the month of August.
Before I move ahead ALWAYS USE STOP LOSSES IN TRADING AND ALSO WE ARE NOT GIVING YOU TRADING ADVICE THESE ARE JUST OUR VIEWS ON THE MARKETS.
IMPORTANT LEVELS TO KEEP AN EYE ON FOR BUYS AND SELLS AND HOW TO GO ABOUT TRADING YEN:
From this chart , it is very clear that we have a beautiful Head and Shoulders pattern in formation. Currently the price seems to be bouncing off the 23.6% Fib levelwhich is also the bottom of the symmetrical triangle and the neckline for the head and shoulders. The first trade that should come to our mind is a breakout pull back and continuation trade. We have also outlined the various major supply and demand areas on the chart which you should place alerts on.
- Short the USD/JPY @ 103.20 or nearest zone with a 40 Pips stop loss and a target of 100.20
- Short the USD/JPY @ 101.30 or nearest zone with a 40 Pips stop loss and a target of 98.90 which is the bottom of the range. Wait for the daily candle to close below the symmetrical triangle and neckline as easy as that and then you short it
All other buy and sell levels are clearly denoted by the red and green levels on the chart.
There is a potential of over 500 Pips on this chart, follow the rules and bank the money!
All trades should have a stop loss not more than 40 Pips as stated on the chart. Place alerts at these level and watch the profitability in front of your eyes and we can have over a 200 Pips move in one day, so please learn buy and hold.
So how can you trade the above technical events? Book a one 2 one consultation session with Platinum Senior trader today!
Have a beautiful day!
Live from the Trading floor!
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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.