Fundamental & Technical outlook of USD/JPY
Fundamentally, In early Asian trading on Tuesday, the USD/JPY rose slightly. Yesterday, during the US session, the dollar/yen tested a high of 110.15. But after the announcement of US consumer inflation expectations, USD/JPY fell to 109.88, and US inflation expectations reached 5.2% in August. At press time, USD/JPY is trading at 110.02. In addition, the USDX, which measures the US dollar against six major currencies, is above the 92.60 level, which deviates from the volatility of US bond yields, which could lead to a rise in the USD/JPY.
- In the upcoming general election in Japan, Taro Kono has officially announced that he stands for the ruling Liberal Democratic Party under his leadership and is optimistic about the political situation in Japan.
USD/JPY closed at 110.00 for the fourth consecutive week on Friday and is still trying to find its way on Monday. During Asian opening hours, after fluctuating in the narrow range of 109.90 near the currency pair, it rose during European trading hours. Nevertheless, the upside of USD/JPY is still limited. Due to the lack of fundamental data, it finally traded at 110.06 and rose slightly during the day.
- The bullish scenario is that the upper part of the price range is currently at 110.20. If the market outlook breaks this area, the upward trend can expect to increase. The next target could be as high as 111.60-70 and 112.20 to 112.50.
- The bearish scenario is that the bottom of the price range is currently 109.70 and 109.50. Last week, the exchange rate was well above this zone. Last month, the price also tested the bottom line three times. If the price falls from this level, the corrective pressure can expect to intensify. And the bottom target can expect to be in the range of 108.70 to 108.50.