minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Turkey Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
Greenback tops at 2 decades high. - Zeal Capital Market

Greenback tops at 2 decades high.

13-05-2022 09:55

“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

Greenback tops at 2 decades high. - Zeal Capital Market

Overall, the pair is tilted towards the upside as market structure remains intact in the long run.

USDJPY Daily Technical Analysis

Greenback tops at 2 decades high. - Zeal Capital Market

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.

Trading Idea

Greenback tops at 2 decades high. - Zeal Capital Market

ORDER: BUY STOP

ENTRY: 131.65

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.

ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forexcommoditiesstock indices, and share CFDsOpen a trading account with min. USD 50 deposit and download our MT4 trading platform now!