Having spent almost three weeks above the 113.00 level, the Yen took up the reins and added almost 100 points to the bulls’ ‘money box’. Again, it means the markets are not sure in the US dollar, and the December rate hike has already become a broken record. So, it is not enough to live up to USD’s advanced hype. The traders are way more interested in FOMC’s decisions for 2018 now.
In turn, the Japanese currency was supported by the rumours. They say the Bank of Japan may cut stimulus ‘de facto’. This sounds like a very positive news for the Yen in the near future. USD/JPY broke an important support at 111.12, and while it stays below the 111.80-112.00 area, the bears will be in charge. Most of all, there is probably the third top in place, so, the decline to 110.80 is quite possible.
Also, we keep in mind that the Fed is getting more dovish even before some possible ‘dovish’ changes inside the Committee, which may happen after J.Yellen’s resignation and J. Powell’s official assignment.
P.S.: Happy Thanksgiving! Don't eat too much turkey.
In turn, the Japanese currency was supported by the rumours. They say the Bank of Japan may cut stimulus ‘de facto’. This sounds like a very positive news for the Yen in the near future. USD/JPY broke an important support at 111.12, and while it stays below the 111.80-112.00 area, the bears will be in charge. Most of all, there is probably the third top in place, so, the decline to 110.80 is quite possible.
Also, we keep in mind that the Fed is getting more dovish even before some possible ‘dovish’ changes inside the Committee, which may happen after J.Yellen’s resignation and J. Powell’s official assignment.
P.S.: Happy Thanksgiving! Don't eat too much turkey.