Japanese Yen Technical Analysis: USD/JPY Needs Some Consolidation

Japanese Yen Technical Analysis – Talking Points:

  • USD/JPY eyes the year’s peaks once again
  • However the current rise looks stretched
  • EUR/JPY is in a similar position, with a break likely needed

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The Japanese Yen is very close to its 2018 lows against the US Dollar and USD/JPY’s latest uptrend has extended into another week.

The fundamental backdrop looks extremely Dollar positive, at least against the Japanese unit. The US Federal Reserve is expected to raise interest rates once again on Wednesday and to the leave the door open to another rise in December. Japanese monetary policy meanwhile remains stuck in ultra-accommodative mode with Bank of Japan Governor Haruhiko Kuroda recommitting it to that policy on Tuesday.

Both currencies tend to play the haven role when trade-war fears dominate market thinking, but the Dollar seems to be catching the best of this bid right now.

Technically speaking, USD/JPY is now back in a trading range, which bounded the gains of mid-July, when the pair made its

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/09/26/Japanese-Yen-Technical-Analysis-USDJPY-Needs-Some-Consolidation.html