Greenback dips, threatened by cautious approach.
“Two prominent hawks from Fed favors conservative approach in tightening monetary policy.”
US dollar extended is drip from higher levels as Fed remains conservative with regards to future policy tightening plans. Previously, investors poured into the greenback as they expect Fed to deliver a super-sized tightening of up to 100 basis point rate hike. However, such expectations waned after Fed member Christopher Waller and James Bullard favor a 75-basis point hike instead. Nonetheless, the currency remains well supported from the downside due to divergence in policy between Fed and other major central banks.
Quick recap on USDJPY
USDJPY remains bullish tilted as recent retracement shows some slack in bearish pressure.
USDJPY Weekly Technical Analysis
In terms of weekly perspective, the pair has recently breached 136.66 while remaining below the psychological level of 140.00.
USDJPY Daily Technical Analysis
While the pair undergoes retracement in daily perspective, it lacks momentum to push further downwards. We expect USDJPY to retest 136.66 before continuing its uptrend thereafter.
ORDER: BUY STOP
STOP LOSS: 139.40
Target 1: 142.00
Target 2: 143.00
ZFX Analyst’s Comment
The pair seemingly lacked bearish momentum to push further downwards. This provides us with expectation for a possible rebound from the lower range and extend its trend after a close above 140.00.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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