JPY has been at its highest point in more than 4.5 years at 114.70 marking a 550+ pip rally in less than a month! Although it has hit its resistance mark, our analysts have reason to believe that it will continue to do so.
If interested, please take a look at what Matt Weller believes are 4 reasons why we should be keeping an eye on this pair for a while:
USDJPY depends heavily on equity flows of Japanese investors into US assets. If real rates will continue to rise which of course depends on the Fed stance and corporate profit outlook then yes the pair has solid bullish prospects.
There are also reports on an increase on US’ global risk appetite increasing contributing to the value of USD/JPY as the US increases invesments.
It is a volatile currency pair.
It makes for a great pick-up in American news.
I can say that many people use it and for good reason.
The Japanese yen is one of the most complex and ambiguous currencies. It is a controversial and ambiguous asset.