InvestMate|USD/JPY Long-awaited correction for FX:USDJPY by InvestMate

💱USD/JPY Long-awaited correction


💱Continuing the thread started in a previous post in which I predicted a decline on USD/JPY .

💱In this post I would like to expand on my point of view

💱Last week the event everyone was waiting for was the interest rate decision, which rose to 4%.

💱This was followed by a press conference in which Jerome Powell spooked the markets with a hawkish tone, which first triggered a sharp wave of dollar weakness, and Powell’s words were followed by a speculative attack to strengthen the dollar.

💱The next day already brought a cooling off and the market returned to discounting the scenario of a weakening dollar in the future and a slowdown in interest rate hikes.

💱4 November Non Farm Payrolls came in weak at 261k where the market was expecting 315k

💱After which the rate from the data we found out unemployment rose to 3.7%

💱All this data could have a positive impact on future inflation readings. Which has been falling for over 4 months.

💱All of the above data is contributing to the slow weakening of the dollar.

💱Looking at the USD/JPY chart where we are at 32 year highs.

💱In an uptrend since 2011.

💱The only significant corrections we have made in recent years were these 2:

💱Looking at the current one-year uptrend impulse, it is hard not to get the impression that in the long term we could use some kind of correction, at least to match the one in July this year

💱Or perhaps we are in for an even bigger correction returning to strong support points?

💱If Japan’s rising inflation forced the central bank to raise interest rates, which are at record lows, and these developments combined with the BOJ’s stated desire to strengthen the currency in recent weeks. We could see a massive downward slide, especially with the dollar

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https://t.me/InvestMatez

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