Analysts recommend going long of USDJPY this week to boost your chances of profitability. See more:
the U.S. Dollar Index rose strongly last week, in line the long-termthat closed extremely near the top of its range. This is significant as it looked like that Dollar may have peaked near a multi-year inflection point, as can be seen in the price chart below.
The USD/JPY currency pair powered dramatically higher to reach a new 20-year high in a movement which has dominated the Forex market. Volatility and momentum are unusually strong, which supports the case for a further rise in the price. the Federal Reserve flirts with an exceptionally large rate hike of 0.75% next week. Meanwhile, the Japanese Yen is the weakest major currency and is being talked down by its central bank, the Bank of Japan, which desperately needs to reflate the Japanese economy, whose inflation remains below the target of 2%.
This trend saw a strong resumption on Friday when US CPI data came in with an unexpectedly high increase to a new 40-year high, as it increases the prospect of a Federal Reserve rate hike next Wednesday as high as 0.75%.