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The greenback is expected to regain some of the early made losses this week, as according to Dukascopy Community members it will appreciate against the Euro, Sterling and Japanese Yen this week. While the single currency has performed a solid rally against the U.S. Dollar last week, American currency managed to soar 250 pips against the Yen, as comments about Japanese pension fund provoked a massive sell-off of the Japanese currency. The pair has penetrated the resistance line of the descending triangle on the 4H chart and is no longer trading in boundaries of a triangle pattern on a daily chart. The penetration of the 102.27 on March 5 was accompanied by a huge spike in trading volume, suggesting it is a breakout and a throwback is unlikely to happen.
Dukascopy Community members also believe the pair will appreciate this week, as practically all respondents are having bullish view on the pair, while consensus forecast stands for 103.39, just slightly below the recent high at 103.76. Before inching to this level, the pair will have to break weekly R1 and R2 at 103.46 and 103.67 respectively.
According to traders, both technical and fundamental analysis are speaking in favour of the pair's appreciation. "Next top I think is 106.5 before bigger move down will happen, but this forecast is also a pullback and run up, cause USD will not give up just yet against the Yen," said Nuonrg. At the same time, Daytrader21 believes that "the Fed and BOJ are diverging from each other, thus making USD/JPY uptrend to continue in the years to come. Most likely Fed will stop easing and will continue with a gradual taper of $10B/meeting and BOJ will engage in more QE." While the outlook is bullish, Thursday's and Friday's fundamental data from the United States will have a strong influence on pair's performance.
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