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25 May 2015
USD/JPY: Yellen's bullishness underpins US dollar
FXStreet (Guatemala) - USD/JPY is currently trading at 121.73 with a high of 121.75 and low of 121.49.
USD/JPY has been consolidated on the bid since Yellen's bullish rhetoric before the weekend which underpinned the Fed's intention for a rate hike at some stage this year. However, we are not getting anything new from the speech over the outlook of the economy and it was said again that slowdown in Q1 were due to temporary factors. We are left with a bullish tone in USD/JPY at the start of this week ahead of the tokyo fix this hour. Should the pair be unable to move through the top of the triangle, as mentioned below, it may give rise to corporate hedging requirements and cap the major yet again within the familiar and four month ranges to the downside. Just today, Exports (YoY) (Mar) were strong at 8.0% vs 6.4% expected.
USD/JPY technically testing bullish triangle top
Technically, USD/JPY is on the verge of a break out of the acceding triangle pattern and bulls are looking for a daily close that could get us above the 122.00. This would be a very strongly bullish signal that could open up the start of a new range to the upside, with 125 as the next psychological handle.
USD/JPY has been consolidated on the bid since Yellen's bullish rhetoric before the weekend which underpinned the Fed's intention for a rate hike at some stage this year. However, we are not getting anything new from the speech over the outlook of the economy and it was said again that slowdown in Q1 were due to temporary factors. We are left with a bullish tone in USD/JPY at the start of this week ahead of the tokyo fix this hour. Should the pair be unable to move through the top of the triangle, as mentioned below, it may give rise to corporate hedging requirements and cap the major yet again within the familiar and four month ranges to the downside. Just today, Exports (YoY) (Mar) were strong at 8.0% vs 6.4% expected.
USD/JPY technically testing bullish triangle top
Technically, USD/JPY is on the verge of a break out of the acceding triangle pattern and bulls are looking for a daily close that could get us above the 122.00. This would be a very strongly bullish signal that could open up the start of a new range to the upside, with 125 as the next psychological handle.