The U.S dollar traded lower against the Japanese yen during the early trading session of last week and then later saw some boost on Thursday after the Federal Reserve said it expected to start raising interest rates next year, after removing a pledge to keep them low for a “considerable time.” The dollar rallied after the Fed said it would be “patient” before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low “for a considerable time.”
The central bank acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.
At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the “next couple of meetings” indicating that a move in April at the earliest is possible.
Weekly bias remains on the upside as 21 and 55 EMA are crossed upward signaling a fresh buy signal which is in line with the major trend( daily, weekly and monthly). Also SSRC, MACD and RSI oscillator shows there’ll be bullish momentum in favor of the greenback during this weeks trading session. I am expecting price to retest 121.831 resistance and a clear break of it will bring further rise to 124.00 psychological zones.
Key fundamental events to watch out for this week is the USD final GDP and Consumer and Consumer Durable Goods Orders. However have it in mind that there are several bank holidays in this weeks trading session due to the Christmas holidays, so there might be less liquidity.