Forex Top Team

USDJPY with a view to 140 yen, I want another ingredient

The dollar/yen hit a high of 139.00 on the Tokyo market yesterday. However, at this level, selling orders were strong, and the price was pushed back to the low 138 yen level. On the other hand, the 138 yen level is maintained, and the lower price is also solid. The dollar has strengthened in response to Fed Chair Powell’s speech, but we need another factor to push the dollar above the 140 yen level. The latest high was 139.39 level on 7/14.

Dollar-selling was also dominant in overseas markets yesterday against major currencies other than the dollar-yen such as the euro-dollar. If this movement does not come to a halt, the dollar-selling pressure is unlikely to be wiped out for the dollar-yen pair as well. With the US jobs report due out on Friday, it may take some time for the dollar to become an all-around bullish against the currencies.

(Source: Minkabu)

We believe that the big trend is still USD buying, but we can see a cautious stance ahead of the US employment statistics at the end of the month and on the weekend.

We plan to consider selling EURUSD if we add it, while keeping USDJPY buying as it is.

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