USDJPY set to break out to new yearly highs?
Despite the expectation that volatility in Forex markets should stay low due to most European markets still being closed for Easter, the FX:USDJPY nevertheless seems worth a deeper look.
The currency pair stabilised around 112.00 last week, only slightly below its current yearly high around 112.20.
This comes as a surprise after Gold finally broke its head-shoulder neckline last Tuesday, while 10-year US Treasury yields keep recovering from their 2019 lows of around 2.35% marked in March.
But with volatility in US equities dropping, and a data set from the Existing Home Sales today is expected to be strong (which seems definitely possible after last month's data, which indicated a surge of 11.8% from the previous month, to a seasonally adjusted annual rate of 5.51 million in February of 2019 - making for the highest reading in eleven months, and the biggest monthly rise since December 2015), a break above 112.20 seems a serious option.
If this break happens and turns out to be sustainable, further gains up to 114.50/115 in the days to come becomes very likely, while only a drop back below the April lows around 110.80 would negate the bullish outlook.
The currency pair stabilised around 112.00 last week, only slightly below its current yearly high around 112.20.
This comes as a surprise after Gold finally broke its head-shoulder neckline last Tuesday, while 10-year US Treasury yields keep recovering from their 2019 lows of around 2.35% marked in March.
But with volatility in US equities dropping, and a data set from the Existing Home Sales today is expected to be strong (which seems definitely possible after last month's data, which indicated a surge of 11.8% from the previous month, to a seasonally adjusted annual rate of 5.51 million in February of 2019 - making for the highest reading in eleven months, and the biggest monthly rise since December 2015), a break above 112.20 seems a serious option.
If this break happens and turns out to be sustainable, further gains up to 114.50/115 in the days to come becomes very likely, while only a drop back below the April lows around 110.80 would negate the bullish outlook.
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