USDJPY has been moving in a downwards trend channel since the 11th July.
The Bank of Japan intervened in the FX markets on the 11th July by buying the Yen off the back of USD weakness. As a result, the price of Yen futures have sky rocketed. However, this does not fundamentally change the long term price of the Yen so we can look to buy this pair once the Yen starts falling again.
Next Wednesday the 31st, the Bank of Japan will release the revised interest rate. There is speculation of a rate hike. If this is the case, USDJPY may continue falling or become range bound.
It's important to also note that the US Federal Reserve is expected to cut rates in September. This will put short term bearish pressure on the US dollar.
Due to the wide interest rate differential of this pair, short term bearishness will not stop this pair from making fresh highs again @ 161.00.
My trade plan
I will be waiting for a break of the trend channel and also after the Bank of Japan rate update. If prices stabilise above 154.00, prices will continue moving higher.
The Bank of Japan intervened in the FX markets on the 11th July by buying the Yen off the back of USD weakness. As a result, the price of Yen futures have sky rocketed. However, this does not fundamentally change the long term price of the Yen so we can look to buy this pair once the Yen starts falling again.
Next Wednesday the 31st, the Bank of Japan will release the revised interest rate. There is speculation of a rate hike. If this is the case, USDJPY may continue falling or become range bound.
It's important to also note that the US Federal Reserve is expected to cut rates in September. This will put short term bearish pressure on the US dollar.
Due to the wide interest rate differential of this pair, short term bearishness will not stop this pair from making fresh highs again @ 161.00.
My trade plan
I will be waiting for a break of the trend channel and also after the Bank of Japan rate update. If prices stabilise above 154.00, prices will continue moving higher.
Note
Price has broke out of channel.Waiting for Bank of Japan Interest Rate Update.
Note
Price back in the channel, wait for Bank of Japan news.
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.
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.