USD/JPY Rate Forecast: Looking Free To Rally As Pair Tests Ichimoku

April 24, 2018

USD/JPY RATE FORECAST TALKING POINTS:

 

  • USD/JPY Price Forecast: JPY weakness may accelerate on break > 100-DMA at 109.01

  • Options premium shows waning premium to protect against JPY strength lifting USDJPY

  • USD/JPY Rate Insight from IG UK: changes in retail sentiment favors price declines

 

On Tuesday, April 24, the US Treasury 10-Year note yield topped 3% for the first time since January 8, 2014. As the yield on the note began to break higher thanks to a confluence of rising commodity prices and declining risk premium, eyes rightfully turned to USD/JPY that appeared artificially low.

 

Now, looking to other factors, the upside for USD/JPY may still likely be in the works. While you can say the US Dollar is stretched in the short-term per short-term momentum readings, traders would also do well to recognize the aggressive institutional short-US Dollar positions that would need to unwind if the USD strengthens further. Should an unwind happen on the USD short trade, which could happen fast, USD/JPY looks to be a favorable place to see the unwind play out in FX.

 

To Read The Full Article Please Visit The Following Link:

https://www.dailyfx.com/forex/technical/home/analysis/usd-jpy/2018/04/24/JPY-Technical-Forecast-Breakout-Ichimoku-US-Dollar.html?DFXfeeds=forex:technical:home:analysis:usd-jpy

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