USD/JPY Technical Analysis: June 22, 2017
During the Wednesday session, the USD/JPY pair dropped although it attained the 111.75 region since there is sufficient buying pressure from traders. Currently, the market is trying to bring the price down amid high volatility the being uncertainty in the market. Eventually, it is anticipated to reach the 112 level or up to 112.50 level later on.
The interest rate differential will still favor the U.S. dollar since the Federal Reserve will most likely implement its rate hike prior to the Bank of Japan. Hence, this will put the pair in a bullish tone although it might need to pull back until there is enough value to gain from going long in this pair. In the meantime, the 111 level below continues to supportive.
In long-term, there is a high chance for the pair to be directed upward and reach the 115 region in the next few months. There is a massive floor seen at 110 level below and in times of pullbacks, it will be more appealing for buyers to jump in the market.
A selloff is highly probable to happen for the Japanese yen when the stock market surges which will also influence the pair and other yen related pairs to move higher. Also, the U.S. dollars will benefit from the U.S. stock market as it performs a notch better than others and the current interest rate outlook of Fed in the next years to come.