Long in USDJPY
Today, I entered a long position in the USDJPY as a result of the US Michigan Consumer Expectations (Jul) data significantly surpassing market expectations. The consensus forecast was for an increase from 61.5 to 61.8, but it unexpectedly rose to 69.4. This unexpected surge suggests the potential for a resurgence in US inflation in the upcoming months, subsequently increasing the probability of the FED maintaining their tightening cycle and driving additional demand for the US dollar. From a technical perspective, it is noteworthy that the USDJPY has broken out of a bearish channel, establishing a bullish channel that further supports the expectation of appreciation.
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