USD/JPY – The Focus Shifts to US Inflation and the Pair is Expected to Refresh Four-day High Above 132.00
Bullish View – Buy Signal
- Buy Price: 131.70
- Take Profit: 132.23
- Stop Loss: 131.06
US inflation has resulted in extended gains for the USD/JPY pair and the pair is likely to refresh its four-day high above 132.00. The market sentiment is being influenced by the anxious atmosphere ahead of US inflation data and airborne threats to the US. The Japanese Yen have surrendered with the citation by Kazuo Ueda stating the present policy as appropriate.
Investors are highly risk averse which is actually favouring the pair to extend the gains further. They are expecting another rate hike by the Federal Reserve if the inflation is still on the rise for the US economy. The risk-aversion theme is also being reflected on DXY as the index was seen refreshing its three day high at 103.47. Overall the outlook for USD/JPY is very bullish giving strong buy signals for the pair at the moment.