Wednesday, August 31, 2016

USD/JPY Bullish

USD/JPY has made a fabulous rally in the past couple of weeks going from a low of 99.54 to a current high of 103.30. The pair has been boosted from both sides - on one hand we have a strong US dollar supported by hawkish expectations that a raise is about to happen in September. On the other hand, Japan is making steps towards depreciating its currency and a raise can be seen in all pairs where the YEN is the other side.

However, with the predominantly bullish sentiment, the pair is now faced with first resistance at 103.43. Bulls need to get this behind their back this week if they want the momentum to continue pushing the pair higher.

The US data that would be released on Friday will definitely have an impact on the pair, as well as the rate hike expected in September.

Chart: USD/JPY H4


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