We noticed a strong activity for the US dollar against the Japanese yen yesterday, as the bulls tried to break the strong downtrend of the currency pair. This pushed it towards the support level 108.57, from which the dollar yen currency pair was bought strongly with gains. This moved it towards the resistance level 109.30, which is stable around at the time of writing the analysis. I often mentioned buying the currency pair from every downward level. The signals from the contents of the recent meeting of the US Federal Reserve Bank were a catalyst for the US dollar to achieve strong gains against the rest of the other major currencies.
“A number of participants suggested that if the US economy continues to make rapid progress towards the committee’s objectives. It may be appropriate at some point in the upcoming meetings to start discussing a plan to “adjust the pace of asset purchases,” the minutes of the US Central Bank’s April meeting stated. The Fed was so cautious that Fed Chairman Jerome Powell said in his April press conference that the bank was not "even thinking about" reducing its bond purchases. The comment in the minutes of the Fed meeting did not specify when talks would start on reducing bond purchases. But it was the most explicit comment from the US Central Bank that better than expected economic performance could trigger such discussions at some future meeting
Amid a distinctive vaccination path for the US administration, more than a year after the coronavirus locked down that brought the "city that never sleeps" into intermittent slumber, New York may be fully awake again this summer. As of yesterday, vaccinated New Yorkers can throw off their masks in most situations, and restaurants, stores, gyms and many other businesses can return to their full capacity if they make sure all of the recipients are vaccinated.
Last spring, America's largest city was also the country's deadliest epicenter of the Coronavirus, with more than 21,000 deaths in just two months. Black and Hispanic patients died at significantly higher rates than whites and Asian Americans. After a year of ebbs and flows, and reopens and closes, the city hopes that vaccines will forever turn the tide. About 48% of the population has taken at least one dose so far. About twenty people died a day in recent weeks, and new cases and hospitalizations decreased due to the winter wave.
Large swaths of the country and the world are also heading towards normality after a crisis that has been blamed on 3.4 million deaths globally, including more than 587,000 in the United States.
According to the technical analysis of the pair: to confirm the transformation of the general trend of the US dollar against the Japanese yen to the upside, it is necessary to breach the psychological resistance 110.00, which may increase the buying operations. Even after the recent gains, the pair remains relatively neutral. Returning stability below the support level of 108.80 will negatively affect any bullish outlook for the currency pair. I still prefer buying the dollar yen pair from every downside. Today, the pair will be affected by the extent of investor appetite for risk or not, as well as the reaction to the announcement of the weekly US jobless claims reading and the Philadelphia Industrialist index reading
