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UnknownUnicorn55352658

USDJPY: Break through important resistance!

Long
U.S. Dollar / Japanese Yen (FX:USDJPY)  
UnknownUnicorn55352658 Updated   
FX:USDJPY   U.S. Dollar / Japanese Yen
Trend Analysis Beyond Technical Analysis Fundamental Analysis usdjpyshort usdjpybuy usdjpyidea usdjpysignal usdjpysetup usdjpytrade usdjpyanalysis usdjpylongsetup
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trendanalysis beyondta fundamental usdjpyshort usdjpybuy usdjpyidea usdjpysignal usdjpysetup usdjpytrade usdjpyanalysis usdjpylongsetup
snapshot

On Sunday, U.S. President Joe Biden and House Speaker McCarthy reached a preliminary agreement to raise the government's debt ceiling, which could hopefully allow the United States to avoid a catastrophic default. It is reported that the agreement is ready to be submitted to Congress for a vote.

Last week's strong U.S. economic data, including inflation, consumer spending, durable goods orders, and the hawkish tone of Fed officials, raised expectations for another Fed rate hike in June. The market is now betting on a nearly 60% probability that the Fed could raise rates by 25 basis points at its June meeting, up from just 17% a week ago. At the same time, markets are now starting to believe that the Fed will not cut interest rates this year.

The breakthrough of the important resistance convergence of USDJPY, the March and May highs of 138.00, left the possibility for the pair to further challenge the high of 142.25 at the end of November. Short-term resistance focuses on the midline of the pitchfork channel, i.e. around 141.3, which coincides with the upper band of the ascending channel since the beginning of the year. If the short-term upward pressure subsides, USDJPY will need to break below the mid-May low of 133.75 to possibly turn the trend.

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Selling at 140.235 has already reaped a decent profit
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