USD/JPY Weekly uptrend opportunity based on 1 Lot Calculation:
- EVENT: Thursday, February 10 at 13:30 GMT - The U.S. CPI figures for January. In December, the headline inflation (Consumer Price Index - CPI) indicated an increase of 7% on an annual basis, the highest in the last 40 years. This time, expectations stand at 7.3%. High inflation numbers could strengthen the dollar against the yen as the US Federal Reserve may become more aggressive by quickly rising interest in an effort to lower inflation in the US;
- The benchmark 10-year US bond yield rose to 1.93%, while the Japanese bond of the same maturity yields only 0.2% with the difference further expanding. This currency pair is very sensitive to interest rates differentials between the U.S. and Japanese bonds;
- The currency pair is at the highest level in the last 5 years and the uptrend may continue.
USD/JPY, February 8, 2022
Current Price: 115.31
|
USD/JPY |
Weekly |
|
Trend Direction |
UP |
|
116.41 |
|
|
116.21 |
|
|
116.01 |
|
|
114.61 |
|
|
114.41 |
|
|
114.21 |
Example of calculation based on weekly trend direction for 1 Lot*
|
Profit or loss Short in $ |
963 |
788 |
613 |
-613 |
-788 |
-963 |
|
Profit or loss Short in €** |
842 |
689 |
536 |
-536 |
-689 |
-842 |
|
Profit or loss Short in £** |
713 |
584 |
454 |
-454 |
-584 |
-713 |
|
Profit or loss Short in C$** |
1,225 |
1,002 |
779 |
-779 |
-1,002 |
-1,225 |
* 1 lot is equivalent of 100,000 units
** Calculations for exchange rate used as of 7:30 (GMT) 8/2/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details