USD/JPY - H1
Yesterday's surge in US CPI Inflation boosted US 10 year Bond Yields and bolstered expectations around rate hikes by the Fed, leading the pair to one of its best days of the year.
That put an emphatic end to the 4-day decline and the US Dollar has retaken control, with the ability to set fresh November highs (114.45) that will allow it to challenge the 110.70-4 key resistance (October 2021 and November 2017 Highs), although a correction may precede.
USD/JPY gets some pushback from the October downward trendline and the Relative Strength Index (RSI) diverges from the price action, refraining from fresh highs today. Given these factors, a slide back towards the EMA100 (110.60-50) is likely, but a break lower would need some impetus.
If that materializes, the positive momentum would be quashed for now and trading between the 38.2% and 50% Fibos could be in the cards.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.