USD/JPY shows a bearish setup, both in terms of technical patterns and fundamentals.
Technical: Head and Shoulders reversal pattern. Key levels 140-142 break below, then 135-137.
Fundamental:
Strengthening the yen - BOJ might raise rates twice, and possibly inflation will remain around 3% as recent wage hikes fuel inflation
Weakening the Dollar - falling U.S. Treasury Yields possibly to 3.5% range and below, Trump's intentions to weaken the dollar to make exports competitive and imports expensive.
Note: Last time, Trump handed over to Biden with DXY at around 90, and the current direction is towards the same.
Technical: Head and Shoulders reversal pattern. Key levels 140-142 break below, then 135-137.
Fundamental:
Strengthening the yen - BOJ might raise rates twice, and possibly inflation will remain around 3% as recent wage hikes fuel inflation
Weakening the Dollar - falling U.S. Treasury Yields possibly to 3.5% range and below, Trump's intentions to weaken the dollar to make exports competitive and imports expensive.
Note: Last time, Trump handed over to Biden with DXY at around 90, and the current direction is towards the same.
Trade active
hitting first target area.Trade closed manually
Retracement could happen towards 147-148 from here,
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.