US Dollar vs Japanese Yen Technical Analysis
The US dollar saw a significant drop against the Japanese yen on Thursday following lower than expected CPI numbers. Despite this, there is still a considerable interest rate differential between the two currencies that many traders are keeping an eye on. This suggests that caution should be exercised when considering shorting this pair, as there may be a bounce in the future.
While holding onto this pair can still be profitable, a pullback may be on the horizon. This could be seen as a necessary correction in the market. It’s important to note that the current candlestick pattern may not be appealing, but it’s worth considering that this analysis was done shortly after the news was released.