USDJPY Fundamentals of the Week of August 03

USDJPY Fundamentals of the Week of August 03

4 August 2014, 13:13
Lonny Strike
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Fundamental Forecast for Yen: Neutral
  • USDJPY Rallies as US GDP Rebounds Strongly in the Second-Quarter
  • USDJPY Attempting to Breakout



The USDJPY broke out of the bearish trend from earlier this year as the Federal Open Market Committee (FOMC) scaled back its dovish tone for monetary policy, but the Bank of Japan (BoJ) interest rate decision on August 8 may boost the appeal of the Japanese Yen as the central bank remains confident in achieve the 2% inflation target over the policy horizon.

USDJPY may face a near-term pullback during the first full-week of August as the Relative Strength Index (RSI) turns around ahead of overbought territory, but we will revert back to the approach of looking for opportunities to ‘buy dips’ in the dollar-yen as the pair breaks out of the downward trend from earlier this year.

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