USD/JPY enters oversold territory suggesting the chance of a pullback.
The pair has fallen rapidly over recent weeks due to expectations the BoJ will raise interest rates,
The pair is now probably in a short-term downtrend, favoring bears.
USD/JPY is trending lower since peaking in mid February. It has fallen about $4.00 since Valentine’s Day and is currently trading in the upper 146.00s.
Expectations that the Bank of Japan (BoJ) will raise its base interest rates from negative levels are fueling a rally in the Yen. The country could even be exiting the moribund growth trend of the last 30 years, analysts at Rabobank hypothesize.
Combined with a weaker US Dollar, which has been falling on the expectation the Federal Reserve (Fed) is moving closer to cutting interest rates – made more certain by a string of dismal employment data – has led USD/JPY’s charge down
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