FX:USDJPY   U.S. Dollar / Japanese Yen
Since February 22, 2021 interest rates has been in the 2’s up until July 1st. Since July, Interest rates have lowered a tad bit but is continuing to range in the late 1.70’s -1.90’s. The Fed says inflation will be transitory. At the end of the day, we are at historically low interest rate levels and I don’t see how we would go back between the 2’s and 3’s at some point. When interest rates fall, the USD or respective currency’s dollar weakens. Vice versa when interest rates are high, the dollar strengthens. I see interest rising overtime and over powering the Yen’s interest rates. The Yen 10 year yield is at 0.10%. The USD 10 yr yield is sitting at 1.25% I see price is trading above my 200 EMA (white line) and looks ready to test previous resistance on the daily chart at some point over time. Price is consolidating a bit. I want to see a breakout once our interest rates hike a bit. Will average in until then. Let’s see how this goes! Not financial advice. Just practicing.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.