A break above the top of Thursday's trading session candlestick would be an extremely bullish signal, potentially propelling the US dollar much higher against the Japanese yen. In the long term, I believe this is an inevitable outcome, especially considering the recent breakout from a major bullish flag, a clear bullish indicator.
Should we break above this level, the "measure move" suggests a target of ¥148. On the flip side, the ¥138 level represents substantial support, as it was the peak of the previous ascending triangle. Additionally, the 50-Day ExponentialUltimately, I anticipate a return of buyers, assuming the market even dips to these levels.
The current market conditions present a promising buying opportunity for the US dollar against the Japanese yen, although Friday's Bank of Japan meeting could introduce some market noise.The Japanese authorities have indicated their intention to maintain a loose monetary policy, so a major correction in the long term seems unlikely. At this point, the market appears to be offering "cheap US dollars", an opportunity I am more than willing to capitalize on.
In the end, the US dollar's significant rally during Thursday's trading session, breaking well above the ¥140 level, presents an interesting dynamic. Influenced by the Federal Reserve's hawkish stance and the Japanese yen, the current market conditions present a promising buying opportunity for the US dollar against the Japanese yen.
Despite potential market noise from the upcoming Bank of Japan meeting, the long-term outlook suggests a bullish trajectory for the US dollar, making it an attractive investment opportunity.
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Source: FXStreetNews - 🏆 14. / 72 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »