Is the USD/JPY set to breakout to new yearly highs, reaching above 112?

By Admiral Markets

Source: Economic Events April 22, 2019 – Admiral Markets’ Forex Calendar

Despite the expectation that volatility in Forex markets should stay low due to most European markets still being closed for Easter, the USD/JPY 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 finaly 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:

Source: Admiral Markets MT5 with MT5-SE Add-on USD/JPY 4-hour chart (between February 5, 2019, to April 19, 2019). Accessed: April 19, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of the USD/JPY increased by 13.7%, in 2015, it increased by 0.5%, in 2016, it fell by 2.8%, in 2017, it fell by 3.6%, in 2018, it fell by 2.7%, meaning that after five years, it was up by 4.1%. Click on the banner below to download MetaTrader 5, and begin trading today!

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Source: Is the USD/JPY set to breakout to new yearly highs, reaching above 112?

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