Get started

Interest-rate

USD/JPY Forecast: Bullish Bias Expected – Key Factors to Watch.USD/JPY Forecast: Bullish Bias Expected – Key Factors to Watch (20/09/2024) As we analyze the USD/JPY pair on 20/09/2024, the outlook appears to be slightly bullish for this week and next. Several key drivers are pushing the U.S. dollar higher against the Japanese yen, creating an attractive opportunity for traders. In this article, we’ll break down the fundamental factors behind this forecast and highlight the elements influencing USD/JPY price action in the coming days. 1. US Dollar Strength Bolsters USD/JPY The strength of the U.S. dollar is a critical factor contributing to the bullish bias in USD/JPY. With the Federal Reserve signaling a commitment to maintaining high interest rates for an extended period, the greenback remains in demand. Fed officials have recently emphasized their concerns about persistent inflation, leading markets to believe that U.S. interest rates will stay elevated for longer than previously expected. This hawkish monetary stance, coupled with strong economic data, has made the U.S. dollar more attractive to investors. As a result, USD/JPY has been moving higher, with the strong dollar likely to continue exerting upward pressure on the pair. Key SEO keywords: USD/JPY forecast, US dollar strength, Federal Reserve policy, interest rate hike, USD/JPY price action. 2. Dovish Bank of Japan Keeps the Yen Weak On the other side of the equation, the Japanese yen remains under pressure due to the Bank of Japan’s (BoJ) ultra-loose monetary policy. The BoJ has shown no signs of tightening monetary policy in the near term, despite global inflationary trends. Japan’s central bank continues to prioritize economic support, maintaining low interest rates while avoiding any drastic policy shifts. This dovish stance contrasts sharply with the Federal Reserve’s hawkish policy, widening the interest rate differential between the U.S. and Japan. This is a major driver of USD/JPY’s bullish outlook, as investors gravitate towards the higher-yielding U.S. dollar over the lower-yielding yen. Key SEO keywords: Bank of Japan policy, Japanese yen weakness, dovish BoJ, USD/JPY interest rate differential, yen depreciation. 3. Interest Rate Differentials Favor USD/JPY Upside One of the most important factors pushing USD/JPY higher is the widening interest rate differential between the U.S. and Japan. While U.S. Treasury yields remain attractive, the yield on Japanese government bonds remains low due to the BoJ’s dovish policy stance. This gap in yields makes the U.S. dollar more appealing for investors seeking better returns. The widening interest rate gap is a key bullish signal for USD/JPY, as capital continues to flow into U.S. dollar-denominated assets. As long as the Federal Reserve maintains its hawkish tone, and the BoJ remains accommodative, this dynamic will likely support the bullish bias for USD/JPY. Key SEO keywords: Interest rate differentials, U.S. Treasury yields, Japanese bond yields, USD/JPY bullish outlook, capital flows into USD. 4. Japanese Economic Weakness Adding Pressure on the Yen Another factor supporting the bullish bias for USD/JPY is the ongoing weakness in the Japanese economy. Japan has struggled with slow economic growth and weak inflation, further justifying the BoJ’s cautious approach to monetary policy. Domestic consumption remains low, and Japan’s economic recovery has been uneven. As a result, the Japanese yen continues to face downside pressure, while the U.S. dollar benefits from stronger economic fundamentals. This divergence between the U.S. and Japanese economies adds to the case for a stronger USD/JPY in the coming weeks. Key SEO keywords: Japanese economic weakness, low inflation in Japan, weak yen, Bank of Japan policy, USD/JPY forecast. 5. USD/JPY Technical Analysis Suggests Further Upside Potential From a technical standpoint, USD/JPY is showing signs of further upside. The pair has been testing key resistance levels, and if these levels are broken, we could see a more significant bullish move. The recent price action has shown strength, with USD/JPY consistently finding support at higher lows. Traders should watch for a potential breakout above these resistance zones, as it could signal further gains for USD/JPY. With strong fundamentals supporting the pair, the technical outlook aligns with the overall bullish bias. Key SEO keywords: USD/JPY technical analysis, key resistance levels, USD/JPY price action, bullish trend, support and resistance. Conclusion: Bullish Bias Expected for USD/JPY In conclusion, several fundamental and technical factors support a slightly bullish bias for USD/JPY over the next couple of weeks. The ongoing strength of the U.S. dollar, the dovish stance of the Bank of Japan, favorable interest rate differentials, and Japan’s economic challenges all point towards further upside potential for USD/JPY. Traders and investors should closely monitor these key drivers as they make their trading decisions. As always, staying updated on central bank policies, economic data, and technical signals will be crucial in navigating the USD/JPY price action during this period. Key SEO keywords: USD/JPY forecast, bullish bias, USD/JPY key drivers, US dollar strength, Bank of Japan policy, interest rate differential, USD/JPY technical analysis.
Long
by PERFECT_MFG
GOLD LONG HERE IS WHY part 2Dear ZTraders, We'd like to provide you with an analysis of the factors contributing to the potential decline in gold prices. While recent gains were largely attributed to geopolitical tensions in the Middle East, several significant factors at play may lead to a drop in gold prices: Stronger U.S. Economy: A robust U.S. economy tends to reduce the demand for safe-haven assets like gold. Investors, during prosperous times, tend to favor investments that offer potential returns, such as stocks and bonds, over non-interest-bearing assets like gold. This shift in investment preferences can lead to decreased demand for gold and, consequently, a decline in its price. Anticipated Interest Rate Increases: One of the critical factors affecting gold prices is interest rates. When central banks signal intentions to increase interest rates, it raises the opportunity cost of holding gold. Investors may opt for interest-bearing assets that promise higher yields, making gold less attractive. The expectation of rising interest rates can undermine gold's appeal, leading to a potential price drop. Delay in Rate Easing: During economic downturns or crises, central banks often implement policies to ease interest rates or use quantitative easing to stimulate economic growth. These measures can increase the demand for gold as a hedge against inflation and currency devaluation. However, if there is a delay in implementing these measures or a perceived slowdown in their effectiveness, it can reduce the upward pressure on gold prices. Recent Gains from Middle East Conflict: Geopolitical tensions, such as those in the Middle East, can elevate the demand for gold as a safe-haven asset. Investors turn to gold during uncertain times as a store of value. However, it's important to note that these gains are often temporary and may reverse when the geopolitical situation stabilizes. Supply and Demand Dynamics: The price of any asset, including gold, is influenced by the fundamental economic principle of supply and demand. If selling pressure outpaces buying pressure for gold, it will lead to price declines. The balance between supply and demand is a pivotal factor in determining gold prices. In conclusion, a combination of a stronger U.S. economy, expectations of higher interest rates, potential delays in rate easing, and a possible reduction in geopolitical tensions in the Middle East can collectively contribute to a decline in the price of gold. Nevertheless, it is crucial to recognize that various complex factors influence the gold market, and its price can be highly volatile. It is advisable for investors to closely monitor economic indicators and geopolitical developments to make well-informed decisions regarding their gold investments. Greetings, ZTRADES
OANDA:XAUUSDLong
by ZILATRADES
USDCAD Weekly Forecast Overnight Rate | 4th June 2023Fundamental Backdrop Overnight Rate on Wednesday is expected to maintain at 4.50% Technical Confluences Resistance level at 1.36374 Support level at 1.33166 Idea If the Overnight Rate maintains at 4.50% as expected, we could see the price drop towards the support level at 1.33166. However, if the Overnight Rate increases, we could see the price rise towards the resistance at 1.36374. NOT FINANCIAL ADVICE DISCLAIMER The trading related ideas posted by OlympusLabs are for educational and informational purposes only and should not be considered as financial advice. Trading in financial markets involves a high degree of risk, and individuals should carefully consider their investment objectives, financial situation, and risk tolerance before making any trading decisions based on our ideas. We are not a licensed financial advisor or professional, and the information we are providing is based on our personal experience and research. We make no guarantees or promises regarding the accuracy, completeness, or reliability of the information provided, and users should do their own research and analysis before making any trades. Users should be aware that trading involves significant risk, and there is no guarantee of profit. Any trading strategy may result in losses, and individuals should be prepared to accept those risks. OlympusLabs and its affiliates are not responsible for any losses or damages that may result from the use of our trading related ideas or the information provided on our platform. Users should seek the advice of a licensed financial advisor or professional if they have any doubts or concerns about their investment strategies.
Short
by OlympusLab
EUR/GBPMaybe a potential short trade for the EUR/GBP? - BoE is bound to come with a 75 Basis point increase on the interest rate Thursday . - England are experiencing way tougher inflation than the European regions. - RSI are already/close to signal a overbought signal, therefore a back-trace to more normal levels would be ideal - ADX also showing a strong upward trend, been doing so for days, but should change direction, if my guts are correct. lets see what happens in the coming week.
Short
by Hvalp
2
🔥 Bitcoin & FOMC Interest Rate Decision: What To Watch ForLike most of you know, in a couple of hours the US Federal Reserve will share with the world how much they will increase the interest rates. Remember that lower interest rates = bullish for the markets. At the moment, there's a 75% expectation that the hike will be 0.75% and a 25% expectation that the hike will be 1%. Naturally, if the FED will increase with 1% we can expect a massive down move. The extremely bearish reaction target for a 1% hike would be $18k. However, if the FED will only increase by 0.75% we can expect a slightly bullish move. This might be the starting signal for a move all the way back to the top of the channel, think $24k or so. Obviously, the percentage of the hike will be important. However, what most market participants are watching will be the FED meeting where J. Powell will talk about the outlook of the markets and the interest rate hikes for the coming months. This is where the real direction of the markets will be decided. My advice would be to wait for what the market will do. Ideally wait until tomorrow, because tonight's initial direction can be a fake out, like a couple of meetings ago.
by FieryTrading
17
USDCAD: After BoC Interest Rate Good afternoon everyone, we are looking at the USDCAD pair again after the BoC Interest Rate decision. They did not change anything so the news were not that good for the CAD and for our long term short trade, that we linked below. On the other hand the pattern is pretty much the same as before. The only difference is that there is another spike high and a better entry chance for now - divergence also held its form. Means we are still overall bearish on this pair.
Short
by darian_fx
2
BTP, calm before the storm, trigger the interest ratehello guys here's a new idea on italy BTP. First of all, we saw recently that the market wants to speculate (again) on BTP, this means that interest rate until September will go down, then will rise due to rating agencies decision and what is called 'DEF', the document of economics and finance by the Government. In this document there'll be the outline of fiscal policy, I expect a higher deficit and maybe a cut in taxes. This will trigger a sell in the bond market of BTP, driving interest rate up and consequently price down. Here I post a couple of interest readings on Italy, which can give us some idea of what to expect. www.zerohedge.com www.zerohedge.com au revoir, docCDS
TVC:IT10
by DocCDS
AUDNZD Elliott Forecast & Flag Breakout TradeAt the moment, in the big picture we are forming an ABC zigzag correction pattern which will take us into the 1.07408 area in which price will continue upwards. For now we can short down to this level by taking flag breakouts in favor of the downside. We have just closed below an ascending triangle on the lower timeframes and this has lead me to go short taking conservative targets @1.08240. I may, however, trail stops with structure if the AUD interest rate decision causes more bears to step in.
Short
by wstipp18
Dollar Index Daily ChartThe dollar index on the daily chart you can see that we are now in a key area where it is testing resistance from February and November 2015, due to recent results from the US raising interest rates this has caused concern for investors and we have seen a big sell off, I believe we may see a big sell off again after the pullback to 99.26 0.382 fib or even gain strength and break back through the 0.236 fib at 101.00 and then break resistance as shown in the chart.
TVC:DXY
by Learn-2-Trade
EURUSD UncertaintyCurrently, the sentiment of the pair seems to be clearly inclined to a down movement of the price. But we should rather wait until Friday to find out more about what will be the real direction of the pair. Note that the US is strongly considering a hike in interest rate which can cause the USD to grow much stronger. However, the France is currently on crosshead of most European traders. Le pen is one step ahead against his opponent. Her winning the presidential election will be crucial for the Euro and combined with the increase in the FED Interest rate we can almost definitely conclude that the EURUSD pair will undergo a downfall.
Short
by Hizmaylof
AUDUSD pivotFREE FOOD "Fed on course to raise interest rates at an upcoming meeting: Yellen" -Reuters This means that the US dollar will appreciate again by around 300 points after the decision.Now seems to be the good time to go long usd. Personally i believe that the AUDUSD is overvalued and should be in the range of 0.65 and 0.7 in the years of 2017/2018 ,but thanks to the rising commodity prices and Donald Trumps fear mongering protectionist policies the aussie dollar stayed clear on the course and has appreciated from falling to 0.72 from 0.75 from the December FED interest rate rate.
Short
by traderdragan
Friendly Unique Forex Reminder to NOT Trade TodayHi there fellow traders, I hope you are all having a great day and a profitable week thus far. This week has been a rough week to trade with all the major economic news events. Last nights the BOJ announced their interest rate decision which they left unchanged and now today we have the interest rate decision from the FED. It is expected that they will leave rates unchanged and therefore the statement will be key. Depending on the view of the FED, hawkish or dovish, will ultimately push the markets. That all being said, it is a complete crap shoot. It is likely that the FED will remain hawkish, but we just never know. As traders it is our goal to facilitate an edge in the markets where the odds sway in our favor. By attempting to trade the FED interest rate decision you are attempting to trade during market conditions where the odds are overwhelmingly against you; that is gambling. Don't be a gambler... be a trader.. We suggest you turn off the computer and get outside. Enjoy the day!
TVC:DXY
by UnknownUnicorn261897
2