BOJ's Loose Policy Opens Path to YEN Depreciation.Target 146.000

12 jul 2022

Fundamentally, there is no saving the YEN as the central bank of japan decided to stick to its policy whereas the opposite could be said for the safehaven high yielding USD. The difference in interest rates has pushed the USD higher against all major and developing currencies. With the inflation still yet to peak, we can expect the FED to keep raising the interest rates to tame the inflation. This week's CPI reading would be crucial for the FED to decide on what to do at its upcoming meeting.

Technically, the supply zone/ resistance level has broken with weekly candle closing above 135.000. As for now, the next resistance comes in at around 146.000 region. The zone between 135.000 & 146.000 seems to be clear of any hurdles and should provide nice and smooth path for the YEN depreciation in the coming weeks. On the lower end, the stop loss could be placed below 126.000 swing low, moreover there are multiple rising trendline that could support the prices near term.



The above image shows UDJPY weekly chart, where it is quite evident the ascending trendline that are supporting the prices. Have a look at the main chart to observe closely all the details on the technical part of the analysis. Cheers