Trading opportunities for currency pair: after a correctional movement, a growth for the dollar against the yen to 124.30/50 is expected due to Fed rate hike expectations for December.
Background:
The last USD/JPY idea I did came out on 26th October. The price at the moment of publication was 121.46. I expected to see a break in the 121.68 resistance before the FOMC meeting (28th October) and then a subsequent growth to the 123.48-124.51 target zone.
The 123.48 price level was reached on 9th November after the NFP on the previous Friday came out. The Non-Farm Payrolls report increased the likelihood of a US Fed rate hike at the meeting to take place in December.
As things are at the moment:
Forex trader market activity is down after the payrolls. The dollar/yen has corrected from 123.06 to 122.44.
What’s of interest at the moment?
Janet Yellen’s rhetoric disappointed the dollar bulls. On Thursday (12th November) we were waiting to hear hints from her about a rate hike by the FOMC in December; this didn’t happen.
The daily indicators are showing that the dollar’s growth against the yen hasn’t yet finished. After 123.60 is reached, the next target is 124.30/50. The trend line (125.85 and 125.27 maximums) passes through this price level.
Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review
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