The JXY is showing bullish market flow, with the RSI consolidating above the 50 line, the CCI at the bottom of a down stroke, and price making new structure highs. The 20 and 50 DEMA are trending up with price. Volatility increased on Friday due to profit taking and the upcoming Lunar New Year holiday in Asia. Speculators are betting that the Bank of Japan, the last major central bank to still employ a loose monetary policy, is edging toward a shift to a tighter stance. Japan's core consumer prices in December rose 4.0% from a year earlier, double the BOJ's target. Experts believe that the dollar/yen pair will continue to decrease and that the dollar will move back into the 130-135 yen range. The greenback has been mostly on the defensive this week, as data from consumer spending to business activity and inflation across major economies highlighted an increasingly fragile outlook for U.S. growth. Investors are waiting for the first Federal Reserve meeting of the year in early February to see if it raises interest rates.
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The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.