Home Technical Analysis Weaker Path for Yen, USD/JPY Review:

Weaker Path for Yen, USD/JPY Review:

by Ahsan Aslam Khan

USD/JPY is rising at a stable pace. USD is in a strong position while Yen has to deal with a weaker path. The struggle of Yen is notable yet there is no positivity in the near term. The rising USD is capping the struggle of yen. The upcoming trading outlook of USD is positive and profitable. The Bank of Japan is also worried about the weaker path of Yen as it will likely increase the prices of imports.

Rise of USD:

Recently USD is seeing inflows, majorly because of the rise in the yields of the bonds.  Particularly its rise against Yen is quite noticeable.  The weaker path of Japanese Yen seems to extend in the coming days. USD is likely to enjoy rise in its worth in the near term as Yen does not seem to gain ground any soon. In the last two months, USD is spiking up steadily against JPY. The economic activities of U.S are backing up the strength of USD. However USD/JPY is going to enjoy gain as the Golden Cross is evident to appear soon. This will likely to motivate a bullish trading trend. The technical indicators are also exposing the very fact. For example, RSI is indicating a solid oversold position. Thus you can expect a bullish trend in the coming days.

Trading Trend of USD/JPY:

The current price of USD/JPY is 108.764. The trading trend is bullish. The price is testing the support point. The recent retracement level of Fibonacci is at 78.6%.  The last two months have been very exhausting for Yen as it continued to gain ground against USD. But it failed to do so. The current economic scenario of US Economy is also strengthening the price of USD which is likely to affect the price of USD/JPY.

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