News Trading USD/JPY

According to the news published by FINEXO on Monday for the trade USD/JPY that the Dollar Rose due to a Number of Supporting Factors mentioned in the report but the Analysts were convinced this is Temporary rise.

“Investors still await a Fed statement, regarding the possibility and timing of a raise in interest rate. Meanwhile, the dollar receives unexpected support from traders wishing to adjust their position before the much-anticipated fed meeting, yet Japanese banking officials state that the dollar is lacking strength besides this technical purchase, and predict no significant moves. Other investors that support the dollar are driven by quarter-end considerations, yet the end of this short trend will expose the dollar to a steep fall, as senior analysts believe”.

With the help of this news, On Tuesday I went short at 108.56 thus made a profit of 97 pips. Though I was expecting some more rise but looking at the market situations I decided to close all my open USD/JPY trades. The news provided to me by my broker helped me to save my pips as on Tuesday the highest was 108.61. Today the highest rate that this currency touched is 108.23. I usually trade through news and make my exit at a proper time. This is my news trading strategy which helps me to earn good and safer. I agree, by using other mediums we can make higher profit but for playing safe and steady news trading is the best.

Today that is Wednesday's data(as shown in the above figure) show that U.S consumer confidence reached a 16-year low. This combined with a record annual drop in housing prices, was the cause of the dollar's steeped fall yesterday. The weakness of this data made investors skeptic about a possible raise in interest rates, estimated to remain steady at 2%, thus increasing the pressure to sell the dollar on Tuesday, but the currency rebounded today.

The Japanese Market has also been influenced by market expectations that the Bank of Japan Will keep interest rates at a low of 0.50%, due to the weakness of its own economy. This brought about a strong falling trend of the Japanese currency against other major currency throughout this month, Yet the dollar remained steady against the yen yesterday, at 107.82 yen.

Today it is expected that the price will be in the range 108.19-107.36 to give us the major trend.

Resistance:
- 108.03
- 108.19
- 108.42
Support:
- 107.65
- 107.36
- 107.28