Is Ripple XRP Price on Verge of Another Price Breakout?Is Ripple XRP Price on Verge of Another Price Breakout?
Strong start for the major US indices after lower-than-expected CPIStrong start for the major US indices after lower-than-expected CPI

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back a bit during the course of the Tuesday session, showing signs of hesitation and therefore I think you’ve got to question whether or not we can truly break out. The CPI numbers coming out much cooler than anticipated in the United States of course has traders out there suspecting that the Federal Reserve is in fact going to have to step away from its monetary tightening, and that of course helps the Japanese yen which is nowhere near tightening its monetary policy to say the least.

The ¥150 level underneath is of course an area that I think a lot of people will be paying close attention to, with a 50-Day EMA underneath rising to show signs of life. Ultimately, the indicator is racing toward the ¥150 level, so I do think that offers a bit of a floor in the market. With that being said, a short-term pullback makes a certain amount of sense, due to the fact that the market has been a little extended, so that short-term pullback could be a buying opportunity given enough time. You have to pay close attention to the interest rates in the United States; therefore I think we have a situation where the market still offers value on these pullbacks, so therefore it’s just a matter of waiting for cheaper pricing of the greenback in order to take advantage of it.

On the other hand, the ¥152 level above being broken to the upside would bring in more FOMO trading, having people run this pair up to the ¥155 level. I still think that happens eventually, because even if the Federal Reserve stands pat with this monetary policy, you still have a massive interest rate differential that will support the “carry trade” in this market. All things being equal, this is a market that I still have no interest in shorting, and therefore I think we have a situation where I’m just waiting for some type of price action to suggest that the buyer has returned to the market taking advantage of that swap at the end of every session.

For a look at all of today’s economic events, check out our economic calendar.

Source link

About the Author: Editorial team of BIPNs

Main team of content of Any type of content should be approved by us.

Share your opinion. And leave a reply within the comments from below.

All Crypto Coins here »