USD/JPY to climb higher?
Alot of MAJOR economic news this week, paying extra focus to the US FOMC rate and the BOJ monetary policy decisions.
Looking at the USD
The FOMC had planned 3 rate hikes for 2017 (Mar, Jun, Sept)
While we anticipate the FOMC to increase rates in this June meeting, we should pay attention to the statement paired with the decision.
This is because, recent economic data has hit a soft patch, indicating a lower probability for a rate hike in Sept.
Looking at the JPY
The BoJ has been hesistant to further adjust its monetary policy, choosing to talk the yen down instead.
Therefore, we do not anticipate any change in its decision on Friday morning.
Because of the above, I expect weakeness in the USD towards 109.50 level.
If price holds at that level, and bounces because of a stronger FOMC commentary, we could see the USD/JPY approach resistance 111.50
Looking at the USD
The FOMC had planned 3 rate hikes for 2017 (Mar, Jun, Sept)
While we anticipate the FOMC to increase rates in this June meeting, we should pay attention to the statement paired with the decision.
This is because, recent economic data has hit a soft patch, indicating a lower probability for a rate hike in Sept.
Looking at the JPY
The BoJ has been hesistant to further adjust its monetary policy, choosing to talk the yen down instead.
Therefore, we do not anticipate any change in its decision on Friday morning.
Because of the above, I expect weakeness in the USD towards 109.50 level.
If price holds at that level, and bounces because of a stronger FOMC commentary, we could see the USD/JPY approach resistance 111.50
Operación cerrada: objetivo alcanzado:
price moved as planned
bouncing off 109.50 towards 111.50
bouncing off 109.50 towards 111.50