Comment: Investing in the forex market is really a tricky undertaking. Learning where price will move next would seem very simple but escapes nearly all traders. The main reason for that is they will typically don’t bear in mind every piece of information which can be found. Merely researching indicators as well as forex charts just gives a small fraction of the picture. To obtain an advantage on the market facts are king and figuring out how to find it is crucial. We look to give everyone the most vital reports that will help you make smarter trading choices. This article, Scotiabank Dollar-Yen Forecast: Continued Adjustment Possible In USD/JPY will give you the latest information about exactly where the professionals believe price will go providing you with an opportunity to become more profitable in your forex trades
Investors definitely sold the bounce in the US dollar to yen (USD/JPY) exchange rate, as the pair spiked to 106.80 last week and today eased back to below 106.50 on a relatively quiet day of trade.
The pair will likely see some volatility today as US CPI often has quite an impact on Dollar/Yen as it has both FX and risk connotations.
Forex strategists at Scotiabank believe that short positioning in the Japanese Yen means there is still room for more upside in the JPY in the near term.
“Domestic political developments are in focus as market participants consider a scandal involving Finance Minister Aso and Prime Minister Abe.
“Sentiment remains dominant and risk reversals are showing a remarkable decline in the premium for protection against JPY strength vs. both the USD and EUR.
“Bearish positioning remains extended, however, leaving JPY vulnerable to continued adjustment.”
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