The currency pair USD/JPY continued to grow confidently during the session on Thursday, the US dollar has grown quite well against all the currencies. However, after the growth to the level of 98 the pair USD/JPY met significant resistance, and the market stepped back from maximal value. In this area the traders will meet a little resistance, because the daily candle could not close higher than the level of 98, which is a technical level of resistance. However, I do not expect this to become a resistance of big value and it will provide a good possibility to buy.
With the route that Japanese market of government bond fund has chosen it is hard to say what can happen in the near future. However, we think that long-term perspective for this pair is aimed upwards, and while rates of interest are growing in the USA, Japanese bank is starting to buy more bonds. At the same time the difference between rates of interest should continue pushing this market upwards.
The market is trying to change its movement direction
Recently the USD/JPY pair has lowered significantly, but one should not get desperate. We think that now the market is really trying to prove long-term tendency towards ascent, but you have to take into account the fact that the pair has been descending for several years. In other words, there are massive sums of money which can be set form this market in order to allow it to grow. This makes us think that the USD/JPY pair will be changeable for some time and it is especially true , if we know that Japan bank actions are one of the main reasons why the pair is ascending. Due to that one can expect high volatility on the market of Japanese yen, but we recommend buying on falls, near the levels which show signs of support.
Now the pair is trading higher than the level of 98, with consolidation higher than this level one can open positions to buy USD/JPY, in other words one may expect corrections near the area of 94-96. The deals for sale will be quite risky, because there is an ascending tendency of the pair, one should wait for some time and try to enter into purchases at other levels of support. The closest aim for the pair provided conversion of the tendency towards growth is the level of 100.Social button for Joomla