Today, on June 28th, the US Dollar is gaining value against the Japanese Yen. In particular, the American currency gained 0,04% amid a relatively calm day in terms of new releases.
The currency pair is consolidating as traders and investors are waiting for the Fed to release its decisions amid the US GDP report. Both the events are scheduled for Wednesday, July 30th.
Still, some experts assume that it is too premature to wait for a full-fledged recovery of the US Dollar against the Japanese Yen. The currency pair was trading in a pretty tight price range during today’s Asian trading session. The thing is that nobody wants to get too risky amid major economic reports coming from the USA in a few days. Everybody appears to be risk-averse and waiting for the situation to clarify.
On top of that, the FOMC is going to close its meeting on Wednesday to publish its preliminary estimation of the US GDP for the second quarter of the year. By the way, this Friday will be a major day for currency traders as well. The thing is that the USA is going to publish its non-farm payrolls report on that day. This is a key economic indicator, which is monitored by millions of traders worldwide.
Apparently, aggressive traders in the market of USDJPY lack new signals and certainty/clarity over the direction of the Fed’s near-term monetary policy. The US currency got stronger. Still, it is too premature to call it a day, especially as the 10-year US bond yield is still close to 2,5%. It is necessary to wait for the confirming signs.
The Yen may got stronger amid geopolitical risks and extra sanctions against Russia, especially if coupled with poor stats from the USA, experts assume.
USDJPY Prospects
Having analyzed the H4 chart of USDJPY, Masterforex-V Academy can give you the following outlook:
After consolidating close to the 101,08 support, the US Dollar started recovering against the Japanese Yen on July 18th. On July 25th, after the US news block, the momentum let USD hit the 101,94 high.
According to the trading experts working for Masterforex-V Academy, the mid-term prospects give you 2 scenarios: a further recovery or a further downtrend.
A further bullish reaction is probable id the price exceeds the resistance level at 101,94. IF this is the case, we are likely to se the price reaching 102,19-102,35 and 102,59.
Alternatively, a break below 101,71 will give way to 101,32 and 101,18.
