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Forex » Continuing aggressive Fed stance could push USD/JPY up

USD/JPY may rise if the Fed maintains an aggressive stance

The completion of a reversal pattern on the daily chart signals that the USD/JPY corrective pullback from a new 32-year high (151.94) is complete (after a limited reaction to the latest intervention when Japan spent a record amount to support the weaker yen). in forex as the strong rally continues for the second day in a row.

Bulls retraced more than 50% from the 151.94/145.10 pullback, adding to short-term bullish resumption signaled by a move back above the daily moving average in full bullish setup and rising positive momentum.

A USD/JPY close above 148.52 (50% Fibonacci 151.94/145.10 retracement reinforced by daily Tenkan-sen trend) would form a new bullish signal and support the rally. psychological barrier 150.

Fundamentals are also working in the greenback’s favor as markets again price the Fed’s 75 basis point hike on Wednesday and expect the central bank to remain hawkish on the terminal rate at 5% expected in Q1 2019. 2023.

Such a scenario would see the USD swell further in forex and pave the way for further gains, opening Fibonacci forecasts at 153.55 (123.6%) and 154.55 (138.2%).

Resistance levels: 149.33; 150.00; 151.94; 153.55
Support levels: 148.29; 147.37; 146.20; 145.10

Slobodan Drvenica, Information and Analytics Manager, Windsor Brokers

An industry veteran with over 22 years of experience, Slobodan Drvenica joined Windsor Brokers in 1995, where he has been an active trader for over 10 years, managing the dealing department and in-house accounting departments. For the past decade, he has led the analytics department and has specialized in currencies and commodities.

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The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, so you should do your own research when making a decision.

Disclaimer: The information and opinions contained in this report are for general information only and do not constitute an offer or solicitation to buy or sell foreign exchange contracts or CFDs. Although the information contained herein has been obtained from sources believed to be reliable, the author does not warrant its accuracy or completeness and shall not be liable for any direct, indirect or consequential damages that may result from anyone relying on such information.

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