#USDJPY @ 149.470 Japanese Yen rebounds after Tokyo inflation data increases bets the Bank of Japan (BoJ) will tighten policy.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- Japanese Yen rebounds after Tokyo inflation data increases bets the Bank of Japan (BoJ) will tighten policy.
The Japanese Yen (JPY) continues to gain strength against the US Dollar on Friday and currency markets head into the weekly close. The pair has dropped more than half a percentage point to reach 149.50 at the time of writing. The Yen finally boxed its way out of its corner on Friday, strengthening against most counterparts, after the release of Tokyo inflation data spurred bets the Bank of Japan (BoJ) will raise interest rates – broadly seen as positive for the currency.
The USD/JPY exchange rate, which measures the number of Yen that can be bought with a single US Dollar (USD), fell back below the key 150 level on Friday after briefly flirting with a breakout higher. The level is seen by many as subject to intervention by the Japanese Ministry of Finance (MoF), after it intervened when the pair hit 151.94 last October. Whether the MoF intervened to support the Yen this time around is subject to speculation.
From a technical perspective, despite Friday’s long decline, USD/JPY remains in an uptrend, on a short, medium and long-term basis. Since “the trend is your friend” according to the old adage, this suggests more upside is probable despite the dip.
USD/JPY falls back below the 150 key psychological level on Friday. Despite the weakness the pair has not fallen sufficiently to change the overall bullish trend – not even on the short-term charts.
The uptrend is, therefore, still likely to resume. The next major target is at the 152.00 highs achieved in October 2022.
The pair has completed an ascending triangle on the daily chart and broken above the 150.16 high of October 3, confirming a breakout. The triangle’s technical target is at around 152.
US Dollar vs Japanese Yen: Daily Chart
A re-break above Thursday’s highs of 150.80 would provide fresh confirmation of the continued advance.
The pair is approaching a key trendline on the short-term charts at around 149.50, however, and a decisive break below the line would probably flip the trend bearish on that time frame.
Such a move would probably precipitate a decline to the 148.70s initially.
A decisive break would be characterized by a long red bearish candle that broke cleanly through the trendline and closed close to its lows, or three red candles in a row that broke cleanly through the trendline with the final candle closing near its lows.
Triangles are sometimes the penultimate formations in a trend, suggesting the chance the current uptrend may be getting near its culmination point.
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
