Greenback tops at 2 decades high.
“Federal Reserve is one of the most aggressive central banks in combating flaring inflation.”
While greenback experienced slight depreciation, the currency remains hovered near 20-years high during European trading hours. Market sentiment shifted dramatically towards the currency after Federal Reserve Chair Jerome Powell cemented the course for further rate hikes. Although Powell refuted the idea for 75-basis point rate hike, he commented that it would be appropriate for additional 50-basis point increases in the next two meetings.
Quick recap on USDJPY
The pair experienced slight depreciation after peaking at psychological level near 131.00.
USDJPY Weekly Technical Analysis
Overall, the pair is tilted towards the upside as market structure remains intact in the long run.
USDJPY Daily Technical Analysis
Looking into daily chart, the pair experienced significant retracement from the top while currently lack of bearish momentum to push further down. This is evident from MACD which displays diminishing downside momentum.
ORDER: BUY STOP
STOP LOSS: 128.45
Target 1: 135.00
Target 2: 138.40
ZFX Analyst’s Comment
The pair lacked adequate momentum to extend its losses pass 127.10 and 200-MA line. We deduce it is likely to rebound from the lower level and retest 130.92 again in the mid-term.
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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