The USD/JPY, also known as the US dollar/Japanese yen currency pair, is one of the most traded currency pairs in the forex market. It represents the exchange rate between the US dollar, the world's primary reserve currency, and the Japanese yen, the currency of Japan, which is one of the major economies in the world.
The USD/JPY exchange rate is influenced by a variety of factors and one of them is key economic indicators from both countries.
One major driver of the USDJPY pair is coming up on Friday with the PCE print. The Personal Consumption Expenditures (PCE) index is the Federal Reserve's preferred measure of inflation because it has a broader coverage of inflation.
The PCE index includes a wider range of goods and services compared to other inflation measures, such as the Consumer Price Index (CPI). It encompasses expenditures by households and nonprofit institutions, providing a more comprehensive picture of consumption patterns. There is a noteworthy period of seasonal strength for the USDJPY ahead between March 28 and April 08. The average return has been 1.25% and over the last 20 years, the pattern has an 85% winning trade percentage.
The largest gain has been over 9% and the largest drop has been around . Could the USDJPY find strength this Friday if the PCE print comes in above expectations? The major trade risk here is that Japan may intervene in the USDJPY to prevent strong gains as a weak JPY makes imports more expensive. So, sudden USDJPY falls cannot be ruled out and are a real risk…
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular ...
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular financial instrument, group of securities, segment of industry, analysis interval or any particular idea, approach, strategy or attitude nor provides consulting nor brokerage nor asset management services. seasonax GmbH hereby excludes any explicit or implied trading recommendation, in particular, any promise, implication or guarantee that profits are earned and losses excluded, provided, however, that in case of doubt, these terms shall be interpreted in abroad sense. Any information provided by seasonax GmbH or on this website or any other kind of data media shall not be construed as any kind of guarantee, warranty or representation, in particular as set forth in a prospectus. Any user is solely responsible for the results or the trading strategy that is created, developed or applied. Indicators, trading strategies and functions provided by seasonax GmbH or on this website or any other kind of data media may contain logical or other errors leading to unexpected results, faulty trading signals and/or substantial losses. seasonax GmbH neither warrants nor guarantees the accuracy, completeness, quality, adequacy or content of the information provided by it or on this website or any other kind of data media. Any user is obligated to comply with any applicable capital market rules of the applicable jurisdiction. All published content and images on this website or any other kind of data media are protected by copyright. Any duplication, processing, distribution or any form of utilisation beyond the scope of copyright law shall require the prior written consent of the author or authors in question. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
