Thursday, November 8, 2018

USD/JPY - 08 November 2018


Fundamental Highlights

The Dollar/Yen gains and ends its two week range trading as investors square up for a hawkish statement from the Fed. Investors are pumping up the US Dollar in anticipation of a hawkish statement from the Fed suggesting a continuation in the path of interest rates in 2019. The Dollar/Yen is also being supported by a rise in the US stock market as economic sentiment turns positive, driving investors away from the safe haven attributes of the Japanese Yen.

Technical Analysis

The Dollar/Yen is currently trading in an upward trajectory in anticipation of a hawkish FOMC statement. The bullish momentum is observed with all the three major moving averages pointing higher. The next leg upwards targeting the 114.50 level will be confirmed if the pair broke above the 114.03 resistance. The off chance scenario would be the Fed releasing a dovish statement which will drive the pair lower back towards 112.91.

Support: 113.34 / 112.91
Resistance: 114.03 / 114.50

Chart (H4)