This is the Key for Yen Traders this Week
Rowan Crosby • 1 min read
The USD/JPY has been a strong performer in the last few weeks and we’ve seen price push back up to 114.00 and at the moment we are managing to hold on.
Up above though, we’ve tried and failed a number of times at the 114.50 level. The USD has rallied on a couple of different occasions. Firstly it was the Trump Tax Reform, getting some traction. Then last week the FOMC indicated that a December rate hike was on the cards. In that period the JPY has been weak as the North Korean threat has faded.
If we can break 114.50, then we are looking at an extended move higher. After all the action last week, especially the FOMC, I don’t think it’s going to be all that easy to do. Long-term I’m bullish on the USD, but I feel that we are in for a period of consolidation. I’ll be watching price action at 114.50, and be tempted to be short early in the week.