The pair has left the range trade period and since FED is convienced that its 2% inflation target has been reached,
the market is buying the rumor that FED will before March 2015 increase its interest rate. This increase may come at a time were QE3 will really end, i.e October 14.
Therefore the market is naturally buying the rumor that FED will increase its interest rate to something above 1.5%-1.75.
So USD is gaining some value whereas YEN is still cheap. Therefore for the next weeks parameter and unless there is a change of policy of BoJ, USD is Bull, and the bottom line is 102.5
Having said that, at the very moment, the pair may face a technical correction because all the indicators are at oversold.
the market is buying the rumor that FED will before March 2015 increase its interest rate. This increase may come at a time were QE3 will really end, i.e October 14.
Therefore the market is naturally buying the rumor that FED will increase its interest rate to something above 1.5%-1.75.
So USD is gaining some value whereas YEN is still cheap. Therefore for the next weeks parameter and unless there is a change of policy of BoJ, USD is Bull, and the bottom line is 102.5
Having said that, at the very moment, the pair may face a technical correction because all the indicators are at oversold.
