Yesterday we finally saw the breakout on the USD/JPY that everyone was waiting for. Once the 102.70 level broke, that signalled many new buyers into the market, and yesterday's surprisingly hawkish statement by the FOMC really intensified the upward momentum. Last month I wrote an article, stating my target price for the upcoming 4-6 weeks is 103.5.
Right now based on recent events, I expect the Dollar to keep on with its current rally and possibly
Reach its highest level since 2008.
Here is what we know-
1) US labor market is recovering at a good pace
2) QE3 is wrapping up in October
3) Interest rates in the US will be going up, probably mid 2015
4) Japanese Economy is contracting- negative GDP
5) Japan is an Export driven economy
6) BOJ will have to take action, and loosen monetary policy
Based on all these factors, I do see the Dollar trading at over 105 by the end of the year
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USD/JPY: 106 By The End Of The Year?
Published 08/21/2014, 06:07 AM
Updated 07/09/2023, 06:31 AM
USD/JPY: 106 By The End Of The Year?
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