USD/JPY Daily Forecast - 21 March 2017

By: DailyForex.com

With the USD retreat after the Federal Reserve raised the fund rates last week, and the following policy statements with less bullish trend from the Fed, the Yen found a chance to make strong gains, with investors fleeing from high risk assets towards safe heaven assets lead by the Yen. The Yen gains reached to 112.25 before settling around 112.85 at the time of writing. The pair is waiting for the market reaction towards the Fed policy and the elections in the Euro zone to resume its climb or continue the reaching lower support levels.

Technically: the support levels are 112.20 and 111.70 and we are still preferring buying this pair on each bullish pounce, as the Fed policy and strong US economy is far different from the Bank of Japan’s policy and the Japanese economy, and at the end of the day the US Dollar will be the winner.

On the bullish side: the nearest resistance levels are 113.40 and 114.20. Any break above the latter would renew the bullish view. 

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.