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Joe Biden’s announcement boosted dollar sales


USD / JPY continues to decline and is currently trading at 107.71.

It should be noted that there is not much positive for the yen, and the pair’s fall is mainly due to the weakening of the dollar.

In Japan, since April 25, a lockdown has been introduced in Tokyo and a number of neighboring prefectures – Osaka, Kyoto, Hyogo. The date of the end of quarantine is called May 11, but while the number of COVID infected in the country is growing every day, the lockdown may be extended. Moreover, the Summer Olympics, which were postponed from last year, were under threat.

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Macroeconomic statistics also do not support the strengthening of the yen. The consumer price index continues to decline in March, although not as fast as in April. PMI of the services sector remained at the level of the previous month – 48.3 p.

The dollar continues to decline despite strong macroeconomic statistics. The index of business activity in the manufacturing sector in April rose immediately to 60.6 p, and in the service sector showed a record value of 63.1 p. The main trigger for the weakening of the USD is the program of Joe Biden to increase the tax burden on wealthy Americans. According to the White House estimates, this measure will attract about $ 2 trillion to the budget, which will be spent on the reconstruction of infrastructure facilities in the country.

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As of the Daily, the decline in USD / JPY reached 38.2% of the Fibonacci grid. The Alligator and the Awesome Oscillator support the development of the downward movement.

usdjpy_daily
usdjpy_daily

If the downward dynamics continues, it is recommended to wait for the asset to consolidate below 107.57. From here we enter sells with a take profit of 106.62. The stop loss is set at 108.00.

Fixing above 108.78 will signal a change in the direction of the trend and to enter long positions with a take profit of 110.67. Placement of a stop loss at 108.00.

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