USD/JPY weekly downtrend opportunity based On 1.00 Lot Calculation:
- EVENT: THE BANK OF JAPAN AND THE JAPANESE FINANCE MINISTRY EXPECTED TO PERFORM A POWERFUL INTERVANTION IN THE FOREX MARKETS. The intervention may be expected to come in the form of huge US Dollar selling and huge Yen buying. As the Japanese yen fell to its lowest since 1990 against the US dollar, the Bank of Japan along with the Mistry of Finance could be expected to intervene again to stem further declines with the Yen. After September’s intervention, which proved pretty weak, this time the markets expect more powerful intervention to defend the area above 150 with the USD/JPY currency pair.
- EVENT (OCTOBER 28): BANK OF JAPAN INTERST RATE DECISION. The bank is expected to keep its benchmark interest rate of negative 0.10% unchanged, but Forex intervention could be on the agenda.
- EVENT (NOVEMBER 2): US FEDERAL RESERVE INTERST RATE DECISION. The US Federal Reserve are expected to raise further their interest rates, from 3.25% to 4.00% this time, which pressures the Bank of Japan to intervene in the Forex markets before the Fed meeting.
- PRICE ACTION: USD/JPY HIT ITS HIGHEST RATE SINCE 1990, GETTING CLOSE TO THE PSYCHOLOGICAL LEVEL OF 150. As the US Federal Reserve kept raising the benchmark interest rates, the divergence between the Japanese benchmark rate (-0.10%) and the US benchmark rate (+3.25%) continued to expand to push investors out of the yen to flock to the US dollar.
USD/JPY, October 19, 2022
Current Price:149.50
|
USD/JPY |
Weekly |
|
Trend direction |
|
|
154.00 |
|
|
153.00 |
|
|
152.50 |
|
|
146.00 |
|
|
143.00 |
|
|
140.50 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
USD/JPY |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-3,010 |
-2,341 |
-2,007 |
2,341 |
4,348 |
6,020 |
|
Profit or loss in €2 |
-3,060 |
-2,380 |
-2,040 |
2,380 |
4,420 |
6,120 |
|
Profit or loss in £2 |
-2,668 |
-2,075 |
-1,779 |
2,075 |
3,854 |
5,336 |
|
Profit or loss in C$2 |
-4,139 |
-3,219 |
-2,759 |
3,219 |
5,978 |
8,278 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 10:40 (GMT+1) 19/10/2022
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