USD/JPY Analysis: In limbo ahead of Trump’s speech
|"The dollar is set to resume the Trump rally if he provides specifics of stimulus measures, notably those related to tax cuts, which appear achievable. On the other hand, the market is also focused on potential risk factors, like Trump taking a tough stance against China. That could prompt the dollar to fall against the yen."
– IG Securities (based on Reuters)
-
Pair's Outlook
Even though the USD/JPY currency pair edged lower on Tuesday, the losses were not as harsh as was first anticipated. Wednesday, however, brings a lot of uncertainty, as the US President-Elect is scheduled to speak today. His speech could have a significant impact on the US Dollar's performance. We expect the Buck to strengthen and climb over the monthly PP, which rests at 116.20. Technical indicators also suggest the Greenback is to edge higher today. The overall ceiling is expected to be the 117.00 mark, where the 20-day SMA coincides with the weekly PP, making that area a rather strong resistance. -
Traders' sentiment
There are now 53% of traders with a positive outlook towards the US Dollar, compared to 52% on Tuesday. At the same time, the number of orders to acquire the Buck inched up from 53 to 55%.
Interested in USDJPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.