(MENAFN- Daily Forex)

• The US dollar has shown itself to be rather resilient against the yen during trading on Thursday.
• This is mainly due to the fact that the PPI numbers came out much hotter than anticipated and I think it kind of lot of people off guard.
• If inflation is in fact going to continue to be an issue in the US, the Federal Reserve is not going to be cutting rates.

That takes that part of the equation out of the conversation. Now, we'll see. I don't know if that's actually the case. But clearly, this gave the markets a lot to think about. The 148 yen level looks as if it is going to be a barrier again, but I think we eventually break above there.

Interest Rate Differential

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The interest rate differential obviously keeps the US dollar much more attractive than the yen because you of course get paid to hold it for every night and especially at the end of the Wednesday session most of you will get triple swap if we break out to the upside the 151 level could be a potential target but we'll just have to wait and see if we break down below the bottom of the candlestick for the trading session on Thursday, then the 145 yen level could be targeted.

EURUSD Chart by TradingView

I like buying this pair. I have liked buying this pair for some time, but I also recognize you are going to be very patient with this pair. I do think that we have put in a significant bottom for the third time now near the 142 yen level. And now I think it begins at slow ascent higher. This grind will also pay you to hold onto it, so this is a bonus to say the least.

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