Bullish USD/JPY Sequence Keeps March-High on Radar

Japanese Yen Talking Points

USD/JPY appears to be creation another run during a March-high (111.40) as it extends a array of aloft highs lows from a prior week, yet uninformed developments entrance out of a U.S. economy might quell a new allege in a dollar-yen sell rate as a information prints clap expectations for 4 Fed rate-hikes in 2018.

Image of daily change for vital currencies

Bullish USD/JPY Sequence Keeps March-High on Radar

Image of daily change for USDJPY

USD/JPY stays bid after unwell to exam a June-low (108.72) and new cost movement keeps a topside targets on a radar as both cost and a Relative Strength Index (RSI) continue to lane a bullish trends from progressing this year.

However, a singular greeting to a astonishing uptick in a ISM Manufacturing consult suggests dollar-yen stays exposed to pivotal developments entrance out of a U.S. economy as a deeper demeanour during a updates showed a Employment member squeezing to 56.0 from 56.3 in May.

Image of Fed Fund Futures

Seasonal trends might explain for a muted response as marketplace appearance tends to skinny forward of a vital U.S. holiday, yet it seems as yet a information imitation has finished small to lean a opinion for financial process as it dampens bets for an upbeat Non-Farm Payrolls (NFP) report. In turn, Fed Fund Futures might continue to prominence singular expectations for 4 rate-hikes, with a dollar-yen sell rate during risk of confronting headwinds over a entrance days should a updates to a practice news moderate a opinion for enlargement and inflation.

USD/JPY Daily Chart

Image of USD/JPY daily chart

  • Lack of movement to break/close subsequent a 109.40 (50% retracement) to 110.00 (78.6% expansion) segment might encourage a incomparable allege in USD/JPY, with a during risk of contrast a March-high (111.40) as it extends a bullish method from a prior week.
  • Need a break/close above a 111.10 (61.8% expansion) to 111.60 (38.2% retracement) segment to open adult a subsequent topside jump around 112.40 (61.8% retracement) to 112.80 (38.2% expansion).

For some-more in-depth analysis, check out a Q3 Forecast for a Japanese Yen

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— Written by David Song, Currency Analyst

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