USD/JPY: all eyes on the crucial support around 108.70 on Friday

Jun 21,2019 21:49   Source:Admiral Markets
<p><a href="https://admiralmarkets.com/analytics/technical-analysis/usdjpy-flash-crash"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/6e730ece4d1c49ebae2c0caafd92fe5c.png" style="" alt="Economic events chart" rel=""></a></p><p><em>Source: Economic Events May 31, 2019 - </em><em><a href="https://admiralmarkets.com/analytics/forex-calendar">Admiral Markets' Forex Calendar</a></em></p><p><br></p> <p>As we move into the weekly close, we should have a deeper look into the USD/JPY. </p><p>After 10-year US Treasury yields dropped to their lowest levels since 2017, and the potential of a risk-off hitting Equity markets after the SP500 CFD confirmed its <a href="https://admiralmarkets.com/analytics/traders-blog/double-top-sp500">double-top trend with the break below 2,800 points</a>. This leaves the US equity index vulnerable to further losses (technically projected as low as 2,700 points), the focus in the USD/JPY switches to the crucial support region around 108.70/109.00. </p><p>While today's economic numbers are considered to be of lesser objective interest than next week's juicy economic docket. Disappointing US data could add further fuel to an accelerated unwinding of carry trades and capital backflows into the JPY. </p><p>If such a development arrives at the same time as a break below 108.70, a potential projected target on the downside can be found around 107.50. In the coming days, further losses as low as the January Flash Crash lows around 105.00 are a serious option. </p><p>Only if we can hold above 108.70/109.00, and go for reconquering 110.70 on a daily close, a stint as low as 105.00, the region around the January Flash Crash lows could be avoided, but seems unlikely. </p><p><a href="https://admiralmarkets.com/analytics/technical-analysis/usdjpy-flash-crash"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/3a6450761ef5d47263d024b02a3bb05b.png" style="" alt="USD/JPY daily chart" rel=""></a></p><p><em>Source: Admiral Markets </em><a href="https://admiralmarkets.com/trading-platforms/metatrader-5"><em>MT5</em></a><em> with </em><a href="https://admiralmarkets.com/trading-platforms/metatrader-se"><em>MT5-SE Add-on</em></a><em> USD/JPY Daily chart (between May 2, 2018, to May 30, 2019). Accessed: May 30, 2019, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>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%.</p><p><br></p> <h2>Investing in Forex with Admiral Markets</h2><p>Admiral Markets offers professional traders the ability to trade with a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5 Supreme Edition!</p><p><a href="https://admiralmarkets.com/trading-platforms/metatrader-5"><a href="https://admiralmarkets.com/analytics/technical-analysis/usdjpy-flash-crash"><img alt="Download MetaTrader 5 and begin trading today!" style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/7fb89113deecb505541568a1c3dd7af2.png"></a></a></p><p><em>Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li>This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. 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