USDJPY has reached the higher low level of an Uptrend line in the daily timeframe chart.
Buy USDJPY at any price between 108.10 until 107.83
*USDJPY Analysis* : USDJPY has reached the higher low level of an uptrend line. Expecting a bounce back from this low level.
Target 1: 108.70
Target 2: 109.48
Target 3: 110.30
Stop Loss: 107.20
USDJPY is moving down for a long time without much retracement.
Now, the market hits the higher low level of an uptrend line.
US Dollar weakness from April month started as the Correction phase initiated by Investors because of Third-wave fears.
US Inflation returns to a normal level as expected by many economists as believed but not return to a normal level as believed by economists in Natixis.
Japan faced the toughest covid-19 cases in the Tokyo regions and other main economic regions. Lockdown restrictions imposed more in Tokyo, Osaka, Kyoto and Hyogo.
Even Japanese Yen gains against US Dollar weakness persists.
As US Treasury yields took 14 weeks high of 1.8% and now declined to level of 1.5%, this was much impacted US Dollar.
Vaccinations are slower in Japan when compare to the US and UK.
Japanese Government added stimulus to recover the economy, and Interest rates kept at a level under Yield curve control.
Biden plan of $1.9 trillion package plays a heavy boost for the US economy.
Vaccination is progressed well as 45% of People will get vaccinated, By July month-end First set of Dose will get completed.
FED continuously said wait and see accommodative stance in policy will keep US economy very supportive, Upcoming US Jobless claims data and CB index further drives US Dollar this week.
The following reasons are the main key driver for Inflation point, Labor wages and employment rate.
If the employment rate gets stable by the end of 2021, we see the inflation to 2%.
But the employment rate is not soon to gets stabilized as expected; the stimulus bill only now gives the hopes for the US Economy to grow.
USDJPY is expected to move up from this higher low zone of an Uptrend.
Get Each trading signal with Chart Analysis and Reason for buying or selling the trade which helps you to Trade with confidence on your trading account.