We published an article on US dollar versus Japanese yen on 14th July - focusing on the strong weekly support to be taken as a good buying opportunity if not broken out. The pair has shown some credibility in its stance by going for a correction amidst bullish impulsive continuation of trend. Somehow the hawkish tone seems to be limited by the upcoming federal funds rate news and FOMC speec by Jerome Powell to provide us with any insight on monetory projections being made by the Federal Reserve for the last quarter. As far as we know for now that there wont be any increase in the interest rates until late 2022 or early 2023 but still the tapering on various monetory fundamentals will be made by the chairman of Federal Reserve, Jerome Powell. The consumer price index and GDP figures are set to release this week  with high expectations and keeping the previous U.S fundamental releases in view - dollar has actually provided some strong figures while handling the covid situation on a parallel note. Coming to the technicals USDJPY had taken an exit from the bullish channel to provide a bearish correction - which completed at 109, forming a strong support. Now, from the current market scenario, the pair is stuck between 110.60 and 109.20 with ranging behaiour. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In the current market scenario dollar yen has to break above 110.40-110-50 with a strong bullish fractal to confirm its continuation of hawkish rally. This will lead USDJPY towards 111.0-111.20, marking the atmosphere of the market with upcoming higher highs before king dollar develops any bearish tone. In case US dollar versus Japanese yen gives a closing below 110-109.90 with a bearish fractal, we would have to position our sellings with targeted destination at 109.50-109.0. We are more asssured with dollar getting to make higher highs, only a breakout below the aforementioned levels can change the stance further with a dovish tone towards 108.14-108.20.

USDJPY D1

Jul 26 2021