The USDJPY pulled back a bit again during the trading session on Thursday as we tested the ¥145 region.
Enter your emailI suspect that between now and then, this pair is probably somewhat listless, as we wait to see what the language is going to be out of that meeting. pulled back a bit again during the trading session on Thursday as we tested the ¥145 region.
This is an area that will more likely than not continue to cause a little bit of support, especially as the 50-DayWith that being the case, I like the idea of buying this market on the steps, as there has been a substantial amount of upward pressure for quite some time.Keep in mind that the Bank of Japan continues to do yield curve control, meaning that they are buying unlimited bonds to keep the interest rate on the 10-year note down to 0.25%, which is tantamount to printing yen.
However, it’s worth noting that on Thursday the European Central Bank did in fact raise interest rates to 2% as anticipated. In other words, the Europeans have not seen a need to slow down, so it’ll be interesting to see what the Fed has to say next Wednesday. In fact, I suspect that between now and then, this pair is probably somewhat listless, as we wait to see what the language is going to be out of that meeting. If the Federal Reserve remains hawkish, I will anticipate that the uptrend would continue in this market, and we would go looking toward the ¥150 level again.