USD/JPY Signal Floating in Profit – Safe Haven Assets Stays In Demand!
Alongside our signal on Nikkei ( NKY ) and DAX, the USD/JPY trade seems to do well. The safe haven pair takes a bearish turn despite dovish remarks from Kuroda. As we mentioned earlier in Market Updates: BOJ Keeps Easy Policy for 2% Target, the BOJ will persistently keep the current easy policy while keeping a close eye on both its positive and side effects.
Kuroda said, “This is exactly the kind of situation in which policy sustainability and durability are important.” Typically, such remarks make the currency weaker, but in this case, the market did the opposite.
Well, the Japanese Yen carries a status of safe haven currency and the ongoing tensions because of the trade war situation and the partial shutdown of the US government are hiking investors’ desire to seek out a safe shelter.
That being said, the Japanese Yen is getting stronger and that’s where we come in. We opened a sell signal in USD/JPY around $110.97 with a stop loss around $111.37 and take profit at $110.67.
If you are already in the trade, consider moving your stop loss at the breakeven level to avoid any reversals. The pair has a nice resistance at $111.250 while the support persists at $110.625.
Good luck!
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