Forex: Dollar may continue to rise versus the yen
In the world markets direction dictates the dynamics of the interest risk, which investors are, despite the upcoming midterm elections in the United States. Thus, stock markets of the world are growing, and in Forex the dollar is weakening against the European currency and strengthened versus the yen.
The dollar/yen was marked at one-month highs near the level of 113.50, and then fell back slightly but remains in positive territory. The demand for defensive assets is irrelevant, as investors do not expect any shocks on the results of the American elections and waiting for a new surge of purchases of risk.
In this context, the USDJPY may continue climbing after a decent growth last week, at least in the short term. In favor of the dollar could also play the upcoming fed meeting, where the regulator will not increase the rate, but can give hints of continued commitment to tighten policy, citing the decent economic statistics.
From a technical point of view, for testing the level of 114.00, which the pair last touched a month ago, will require a more pronounced demand for risky assets, coupled with additional catalysts for the dollar. The probability of such a scenario this week is present, but there is a threat of profit-taking in case of deterioration of moods in the ranks of global investors.
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