USD / JPY remains in the 115 zone

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  • USD / JPY bulls are targeting higher levels on Fed sentiment.
  • The Fed is becoming increasingly aggressive as inflationary fears mount.

The USD/JPY it remains in the 115 zone around 115.35 and was in a Thanksgiving range of 115.24 / 45.

So far, and since mid-November, some short contraction in the JPY seems warranted by some support for US 10-year yields, given how overloaded the yen’s net short positioning was. However, the pair could be here to stay. However, the US dollar fell slightly on Thursday. Traders are absent for the holidays, but the dollar remains in positive territory around the highest levels seen since July 2020 against the euro and in the DXY index. The dollar has strengthened as markets anticipate that the US Federal Reserve will raise rates before other major central banks.

On Wednesday, the Minutes from the Fed’s Nov. 2-3 meeting supported the case for a higher US dollar, but did little on the day to send it much higher. There could be a delayed reaction here, perhaps with investors making gains on long positions generally ahead of the long weekend.

However, the Minutes have indicated that board members were more concerned about rising inflation. The December meeting will be an important meeting where the pace of slowing down your bond buying program could begin, as many members have already advocated. as such, markets are preparing for a takeoff earlier than anticipated.

Niveles USD/JPY

The aggressive bias is expected to keep USD / JPY afloat. Commerzbank analysts are expecting more of the pair with the 115.60 Fibonacci retracement 61.8% of the downside move since 2015 being the focus of attention. “Here’s the 117.56 level, the 1998-2021 resistance line and 119.41, the 1975 downtrend. We have a short-term uptrend at 113.92.”

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