Please disable Ad Blocker before you can visit the website !!!


by SignalFactory   ·  November 24, 2021 | 13:00:35 UTC  


by SignalFactory   ·  November 24, 2021 | 13:00:35 UTC  

The USD/JPY breached the 115.00 resistance on Tuesday as yield differential arguments offset risk-off tones. The risk is for the pair to extend higher after the breach of this key technical level, economists at OCBC Bank report.

The Dollar/Yen is trading lower on Tuesday after giving back earlier gains. Shortly after the opening, the Forex pair broke through the 115 area for the first time in nearly five years before profit-takers came in at 115.154.

The dollar hit a new four-and-a-half-year high against the yen following Monday’s solid gains after Federal Reserve Chair Jerome Powell was renominated for a second term, reinforcing bets that U.S. interest rates would rise next year and diverge from Japan’s.

“We expect the week Japanese Yen narrative to continue finding support amid attention to monetary policy divergence,” Barclays analysts said in a note.

Biden Chooses Powell over Brainard:
U.S. President Joe Biden chose Powell over the other leading candidate Lael Brainard, whom markets consider being the more dovish of the two, though Brainard will be Fed vice-chair.

The news reinforced market expectations of rate hikes next year when the central bank finishes tapering its emergency bond-buying program.

The price action suggests investors are comfortable with Powell’s nomination and the notion that he will lead the Fed to begin pricing in rate hikes from July next year. This idea was supported by comments from at least three officials last week who opening discussed ramping up the pace of tapering too.

As Inflation Surges, Fed to Debate Faster Taper, Earlier Rate Hikes:
While the nomination of Powell triggered the latest price surge by the USD/JPY, the Forex pair is likely to continue to be supported the notion of a faster tapering of Federal Reserve stimulus.

Federal Reserve policymakers are publically debating whether to withdraw support for the U.S. economy more quickly to deal with surging inflation, with one of the central bank’s most influential officials signaling last Friday that the idea will be on the table at the Fed’s next meeting in mid-December.

The Japanese Yen is sensitive to moves in U.S. Treasury notes, and two-year U.S. Treasury yields rose 8.5 basis points on Monday to their highest since early March 2020. They last yielded 0.5924%, little changed in Asian hours.

That being said, the direction of the Dollar/Yen is likely to be controlled by the spread differential between U.S. Government bonds and Japanese Government bonds until the Fed’s next meeting in mid-December.

With the Bank of Japan holding rates steady and the Fed likely to speed up tapering and the timetable of its first-rate post-pandemic rate hike, the near-term advantage continues to support a strong U.S. Dollar.

USD/JPY Long (Buy)
Enter At: 115.281
T.P_1: 115.957
T.P_2: 116.596
T.P_3: 116.941
T.P_4: 117.695
T.P_5: 118.637
S.L: 113.941

All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user. This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use. Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered. While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all. All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information. All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way. The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions. Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company. Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results. Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.

Signal Factory is now on Telegram

make sure to join our Telegram channel now and you will not miss any update