Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Portfolio Optimizer Suggests USD/JPY Long Is Important Asset

By MyFXspot researchForexApr 03, 2019 10:04AM ET
www.investing.com/analysis/portfolio-structure-optimizer-suggests-usdjpy-long-is-important-asset-200403494
Portfolio Optimizer Suggests USD/JPY Long Is Important Asset
By MyFXspot research   |  Apr 03, 2019 10:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Today we have added EUR/USD, USD/JPY, gold and S&P 500 to our portfolio structure optimizer and that is what we’ve got as a result:

Asset Classes
Asset Classes

The model maximizes the expected rate of return and minimizes the risk and suggests USD/JPY long, Gold long and S&P 500 long as an optimal combination for the current phase of the economic cycle.

Recent Data From Japan

Japanese companies' expectations for inflation over the next year stagnated, a Bank of Japan survey showed on Tuesday, underlining the daunting challenge facing policymakers as they seek to boost growth and prices amid slowing global demand.

Companies expect consumer prices to have risen 0.9% a year from now, unchanged from their projection three months ago, according to a quarterly survey by the BOJ.

Firms expect consumer prices to have risen by an annual 1.1% three years from now, unchanged from the previous survey. Companies also saw inflation at 1.1% five years ahead, slightly below a 1.2% increase expected three months ago.

The discouraging inflation expectations reading comes in the face of increasing risks to Japan's economy as global trade slows in a blow to profits and consumption.

There are also uncertainties over the government's plan to raise the sales tax later this year.

A separate survey from the BOJ on Monday showed business sentiment slumped to a two-year low in the March quarter, underscoring concerns that Sino-U.S. trade dispute and softening global demand were taking a toll on the export-reliant economy.

The BOJ's next policy meeting ends on April 25.

Core consumer prices rose an annual 0.7% in February, slower than a 0.8% increase in the previous month, while in the same period exports fell for a third month, suggesting the central bank might be forced to offer more stimulus eventually to temper the effects of slowing external demand and trade frictions.

Slowing global growth, the Sino-U.S. trade war and complications over Britain's exit from the European Union have already forced many policymakers to shift to an easing stance over recent months.

Many in the BOJ expect Japan's economy to emerge from the current soft patch in the second half of this year, assuming China's stimulus plans can revive demand there.

However, global trade friction will not subside as the United States re-negotiates trade deals to lower its trade deficit, meaning Japan's economic slowdown could be prolonged.

The government plans to raise the nationwide sales tax to 10% from 8% in October to generate extra revenue for rising welfare costs. This plan may weaken consumer spending.

Short-Term Trade Idea

USD/JPY saw the second biggest one-day rise of 2019 according to prices, when it closed up 71 pips on Monday, to probe the 200-day moving average now at 111.48. A daily close above the 200-day moving average will unmask the 2019 112.13 high. Our short-term trade ideas is to get long on dips at the 111.05, which is ahead of the 100-day moving average which is currently at 110.98.

Economic research and trade ideas by MyFXspot.com

Portfolio Optimizer Suggests USD/JPY Long Is Important Asset
 

Related Articles

Al Brooks
EUR/USD Turning Down By Al Brooks - Jun 18, 2021 1

– EUR/USD is turning down from a lower high major trend reversal on the weekly chart. It is also the right shoulder of a head-and-shoulders top. – Breakout below the May 5 low at...

Jason Sen
USD/CAD Sends Important Buy Signal By Jason Sen - Jun 18, 2021

EUR/USD collapsed through 1.1995/90 and 1.1950/40 for a medium-term sell signal. USD/CAD rocketed through a strong nine-month trendline and 200-week moving average resistance at...

Portfolio Optimizer Suggests USD/JPY Long Is Important Asset

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Bob Blahblah
Bob Blahblah Apr 03, 2019 7:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so, long gold and short $ and stox, got it
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email