Trading | 5 months ago
The US dollar has been continuously outperforming the Japanese yen from last seven days. The US dollar creates a multi month new highs due to the expectations of strong United States economic growth. These expectations are also supported by successful and precise vaccine rollout and huge fiscal stimulus package approved by the Biden administration.
As a result, the USD/JPY pair rose by 0.73% in the last week and 0.90% in this week. The Dollar Index, which tracks the U.S. dollar against the six major currencies in the world, reached to 93.31 and created a new five months high. If the rally continues, then USD/JPY pair could reach a new yearly high very soon.
Currently the USD/JPY pair is trading at 110.67 price level which is an important resistance zone. USD/JPY rose to a new high of 110.97, which is its highest level in a year. The USD/JPY pair is considered the second most liquid currency pairing in the Forex market There are multiple factors which are worth analyzing this week for USD/JPY.
The Japanese yen is also getting affected by the easing trade tensions between the United States and China. In the meantime, according to the reports announced by ministry of Japan, Retail Sales fell 2.7% in January and It could further fell to 2.8% in February. One must look for short-term buying opportunities in USD/JPY.
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