USD/JPY Forex Technical Analysis from freeamfva's blog
he Dollar/Yen closed lower for a third consecutive session on Friday as investors continued to book profits following a 12 session rally that drove the Forex pair into its highest level since early November 2017.
With the financial markets nearly discounting the prospects of a first U.S. rate hike by next July in recent days, the dollar has become more sensitive to risk sentiment.To get more news about ic markets registration, you can visit wikifx.com official website.
On Friday, the USD/JPY settled at 113.495, down 0.522 or 0.46%.
The Dollar/Yen lost ground despite the 10-year U.S. Treasury yield hitting 1.68% on Friday, after the latest weekly jobless claims report came in lower than expected in the previous session.
Bullish investors may have also been influenced by comments from a Fed official. Fed Atlanta President Raphael Bostic told CNBC on Thursday that he sees an interest rate hike coming in the “late third, maybe early fourth” quarter of 2022, as inflation persists. This is later than the financial futures forecast calling for a July 2022 lift-off in rates. The remark may have encouraged a few long Dollar/Yen longs to take profits and pare positions.
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on October 20, 2021.
A trade through 114.694 will negate the closing price reversal top and signal the resumption of the uptrend.
The main trend will change to down on a trade through 110.826. This is highly unlikely but there is room to the downside before the next support level.
The closing price reversal top is a potentially bearish chart pattern, but it doesnt necessarily signal a change in trend. Often the chart pattern is designed to alleviate some of the upside pressure.
In this case, we could see a 2 to 3 day pullback into the short-term 50% level at 112.760 before new buyers show up.
The 12-day rally suggests that investors were pricing in the start of Fed tapering in November and a possible rate hike by July 2022. Now that the tapering is a given, traders may have decided to book profits while they await more clues about the timing of the first Fed rate hike at the November 2-3 monetary policy meeting.
With the financial markets nearly discounting the prospects of a first U.S. rate hike by next July in recent days, the dollar has become more sensitive to risk sentiment.To get more news about ic markets registration, you can visit wikifx.com official website.
On Friday, the USD/JPY settled at 113.495, down 0.522 or 0.46%.
The Dollar/Yen lost ground despite the 10-year U.S. Treasury yield hitting 1.68% on Friday, after the latest weekly jobless claims report came in lower than expected in the previous session.
Bullish investors may have also been influenced by comments from a Fed official. Fed Atlanta President Raphael Bostic told CNBC on Thursday that he sees an interest rate hike coming in the “late third, maybe early fourth” quarter of 2022, as inflation persists. This is later than the financial futures forecast calling for a July 2022 lift-off in rates. The remark may have encouraged a few long Dollar/Yen longs to take profits and pare positions.
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on October 20, 2021.
A trade through 114.694 will negate the closing price reversal top and signal the resumption of the uptrend.
The main trend will change to down on a trade through 110.826. This is highly unlikely but there is room to the downside before the next support level.
The closing price reversal top is a potentially bearish chart pattern, but it doesnt necessarily signal a change in trend. Often the chart pattern is designed to alleviate some of the upside pressure.
In this case, we could see a 2 to 3 day pullback into the short-term 50% level at 112.760 before new buyers show up.
The 12-day rally suggests that investors were pricing in the start of Fed tapering in November and a possible rate hike by July 2022. Now that the tapering is a given, traders may have decided to book profits while they await more clues about the timing of the first Fed rate hike at the November 2-3 monetary policy meeting.
Post
| By | freeamfva |
| Added | Oct 25 '21 |
Tags
Rate
Archives
- All
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
The Wall