USDJPY tests demand zone, invalidates support turned resistance
Partially on the news that the Bank of Japan is keeping monetary policy steady, both USDJPY and EURJPY gained a few ticks. What does a steady monetary policy mean? It devalues the Yen as it is a sign that the Japanese economy isn’t picking up sending a bearish wave of sellers.
USDJPY is in the spotlight as it shows the U.S. Dollar strength may be returning. A bit of supply & demand concept, but this pair hits the demand zone once again and doesn’t break through it. Once we pair this with the rally and then sell-off that broke through the support turned resistance zone, it gives this pair greater room to move upwards and extend its original trend.
USDJPY is in the spotlight as it shows the U.S. Dollar strength may be returning. A bit of supply & demand concept, but this pair hits the demand zone once again and doesn’t break through it. Once we pair this with the rally and then sell-off that broke through the support turned resistance zone, it gives this pair greater room to move upwards and extend its original trend.
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.