Hey y'all! The
USDJPY
pair appears to be in a bit of a consolidation, right in the 3-week consolidation zone from the last week of March to the first week of April, roughly. To get the wrap on the fundamental drivers of the pair, go ahead and read these articles;
https://www.dailyfx.com/forex/market_alert/2017/05/23/Japanese-Yen-Steady-Despite-Monthly-Activity-Miss.html?DFXfeeds=forex:market_alert
https://www.bloomberg.com/news/articles/2017-05-23/this-summer-love-in-for-em-currencies-and-yen-surely-won-t-last
From a technical standpoint, one of two things is a given; price will either break out of the consolidation to the upside and likely encounter resistance at either the diagonal resistance line or the resistance ceiling from January, OR price breaks to the downside and likely finds support at the diagonal support line. To play it safe, I'd wait for a breakout as a confirmation and a retest to get a better price to enter the market.
There's more downside potential given the current political uncertainty in the US, rising inflation which was helped by April's +0.2 CPI and the expectation of a not-so-"tremendous" tax plan for the middle and lower class Americans. The tax plan is due today.
USDJPY
pair appears to be in a bit of a consolidation, right in the 3-week consolidation zone from the last week of March to the first week of April, roughly. To get the wrap on the fundamental drivers of the pair, go ahead and read these articles; https://www.dailyfx.com/forex/market_alert/2017/05/23/Japanese-Yen-Steady-Despite-Monthly-Activity-Miss.html?DFXfeeds=forex:market_alert
https://www.bloomberg.com/news/articles/2017-05-23/this-summer-love-in-for-em-currencies-and-yen-surely-won-t-last
From a technical standpoint, one of two things is a given; price will either break out of the consolidation to the upside and likely encounter resistance at either the diagonal resistance line or the resistance ceiling from January, OR price breaks to the downside and likely finds support at the diagonal support line. To play it safe, I'd wait for a breakout as a confirmation and a retest to get a better price to enter the market.
There's more downside potential given the current political uncertainty in the US, rising inflation which was helped by April's +0.2 CPI and the expectation of a not-so-"tremendous" tax plan for the middle and lower class Americans. The tax plan is due today.
