USD/JPY weekly special report based On 1.00 Lot Calculation:
- BREAKING NEWS (DECEMBER 20): THE BANK OF JAPAN MAKE CHANGES WITH ITS BOND BUYING PROGRAMME, WHICH COULD POTENTIALLY REDUCE BOND BUYINGS. The Bank said that they will expand the band around its 10-year Bond yield target to 0.5% above and below (up from 0.25%). Meanwhile, the Bank kept its benchmark interest rate unchanged negative at -0.10%. The latest monetary policy changes by the Bank of Japan has increased the value of the Yen by more than 3.00%.
- BANK OF JAPAN FOREX INTERVANTIONS TO PROTECT THE FALLING YEN. The latest intervention in 2022 came in the form of selling US dollars, buying Yen. Latest intervention in 2022 was estimated at 36 billion dollars. Japan is expected now to perform smaller but more frequent yen interventions if necessary to protect the Yen.
- US FEDERAL RESERVE SLOWS DOWN THE INTEREST RATE HIKE CYCLE. The Fed is expected to raise interest rates by 25 basis points in February, meaning a slowdown compared to December’s increase of 50 basis points to 4.75%. In early 2023 the Fed is expected to end the hike cycle, probably with a terminal rate of around 5%. Morgan Stanley expected the Fed to start reducing the rates already in Q4 of 2023, while Bank of America estimates the first cut could come in December 2023. Approaching the end of the current hike cycle, the US dollar could be expected to remain under negative pressure.
USD/JPY, December 20, 2022
Current Price: 132.50
|
USD/JPY |
Weekly |
|
Trend direction |
|
|
137.00 |
|
|
136.00 |
|
|
135.40 |
|
|
129.50 |
|
|
127.00 |
|
|
126.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
USD/JPY |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-3,407 |
-2,650 |
-2,196 |
2,271 |
4,164 |
4,921 |
|
Profit or loss in €2 |
-3,205 |
-2,492 |
-2,065 |
2,136 |
3,917 |
4,629 |
|
Profit or loss in £2 |
-2,803 |
-2,180 |
-1,807 |
1,869 |
3,426 |
4,049 |
|
Profit or loss in C$2 |
-4,641 |
-3,610 |
-2,991 |
3,094 |
5,673 |
6,704 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 09:40 (GMT) 20/12/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 Senior Account ManagerClient Manager for more detail