UPTREND RESUMPTION: USDJPY LIKELY TO BREAKOUT FROM CONSOLIDATION
Since COVID-19 crisis eased around the globe from last year, we have seen a RISK ON mood in the markets thus propelling USDJPY to its recent highs! However at the moment the crisis between Russia and Ukraine has given this pair an excuse not to go higher. The safehaven status of the JPY is preventing this pair from heading higher and therefore we can assume its just consolidating at the moment.
With both USD & JPY being SAFEHAVENS in this scenario, we can expect the USD to win here. The reason being the FED is continuing to hike interest rates and inflation is at all time high. The tightening OIL supply also would just add to the inflation woe, thus putting pressure on FED to keep track on raising rates.
SIMPLY ON TODAY'S TERMS, THE INTEREST RATE DIFFERENTIALS BETWEEN THESE TWO SAFEHAVEN PAIRS WOULD LIKELY CAUSE USDJPY TO BREAKOUT AND HEAD TOWARDS THE LIKELY LONG TERM TARGET OF 118.000 LEVEL
CHEERS
With both USD & JPY being SAFEHAVENS in this scenario, we can expect the USD to win here. The reason being the FED is continuing to hike interest rates and inflation is at all time high. The tightening OIL supply also would just add to the inflation woe, thus putting pressure on FED to keep track on raising rates.
SIMPLY ON TODAY'S TERMS, THE INTEREST RATE DIFFERENTIALS BETWEEN THESE TWO SAFEHAVEN PAIRS WOULD LIKELY CAUSE USDJPY TO BREAKOUT AND HEAD TOWARDS THE LIKELY LONG TERM TARGET OF 118.000 LEVEL
CHEERS
