US dollar versus Japanese Yen had entered into a complex correction after breaking out of our bullish channel to complete its corrective wave structure. Its more of a range bound for usdjpy for its moving within its daily highs and lows. Jerome Powell is expected to downplay the dollar, not much stigma is expected by traders and investors. Federal funds rate are not ready to provide any hike in returns and will be keeping the interest rates steady. Federal Reserve has given hints on the expected increase in any interest rates are not happening before last quarter of 2022 or mid 2023. The coronavirus condition had hit American economy hard and isnt yet in the position to attract investors by fancy increase in federal funds rate. The monetory policy due this week in Jerome Powells speech is expected to provide dovish sentiments which will pull the pair down.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

USDJPY is trading below our  exponential moving average 200 and 50 in four hourly chart with our exponential moving average 50 acting as a resistance in daily time frame as well. We are anticipating the US dollar versus Japanese Yen will come down to our 61.8 and 50% fibb retracement level before providing us with any higher possibilities. The four hourly technicals are all pointing at a bearish reversal while the fundamentals will be more supporting the dovish stance as well. 108.30 should be our targeted destination. Incase USDJPY breaks above 110.63, then it will be taken as a continuation of our major bullish trend. 

USDJPY H4

Jul 28 2021