USDJPY: today's growth target is 150.5–150.7

20 February 2024 113
USDJPY: today's growth target is 150.5–150.7

USDJPY quotes have grown by more than 6.5% since the beginning of the year, steadily moving in an ascending channel.

USDJPY: today's growth target is 150.5–150.7 - Photo 1

The pair's main growth driver has been the strengthening of the US currency due to the still high interest rates in the United States. The reluctance to ease monetary policy makes the US economy much more advantageous compared to the Japanese one, where the key rate has been firmly fixed in the negative zone. This difference in the levels of interest rates of the two countries acts as a strong support for the dollar's growth against the yen.

There is no change expected in the monetary policies of both countries in the nearest future, thus benefiting the US currency in the medium term.

Moreover, no important economic data that could break the USDJPY uptrend is scheduled for today. So, the conditions are favorable for trading with the trend direction.

The pair quotes approaching the lows of the ascending channel seems to be an attractive entry point in the trend direction.

The CFTC report of February 16 showed that speculators of the world's first economy are becoming less interested in the yen. This is yet another evidence of the USDJPY growth potential.

Technical Analysis Overview

From the technical analysis perspective, the nearest resistance levels will be 150.5 and 151.6. The Relative Strength Index doesn't show any signals that the pair is overbought, which is an additional factor in favor of growth.

USDJPY: today's growth target is 150.5–150.7 - Photo 2

Trading plan for today:

Buy USDJPY from the market at the current price with Take Profit 1 = 150.5, Take Profit 2 = 150.7, Take Profit 3 = 150.85.

Protect the positions with Stop Loss = 150.0.

Successful trading to everyone!

This content is for informational purposes only and is not intended to be investing advice.

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