- Range 120 - 119.70
- The pattern
The main reason why USDJPY cann't rally while other pairs go up is that:
- Investors still sell stock and hesitate in buying it.
The fear that FED would hike rate leading to higher borrowed cost make investors worry to continue buy equity.
However, I don't think higher borrowed cost is a big problem.
If FED hike rate by 1% : That is a big deal, but 25bp is not a big deal.
As US economy still perform very well , and buy stock is a good choice.
Hence, I think USDJPY quickly backs to the uptrend.