Forex Daily Analysis: 07 May 2021 - Weakening of the US Dollar

Today's forex daily analysis on May 7, 2021 discusses the strengthening of the Yen against the US Dollar which occurred in market trading last Thursday which had an impact on the weakening of the US Dollar currency. For some time now, the movement of the Yen has mostly strengthened, besides because of the weakening of the US Dollar also supported by the positive release of Japanese economic data. For today's market movement in the Asian session, it is predicted to continue its strengthening, this is because it is still supported by the weakening of the US Dollar. Positive signals again occurred for the release of Japan's Average Cash Earnings and Monetary Base economic data. The data has been released and the prediction has become a reality, because the data release is better than the prediction and the previous period. The greenback fell again against several other major currencies, a factor that caused the weakness due to the Fed's dovish policy. In a meeting some time ago, FOMC officials still argued that the increase in inflation was still temporary and still maintained the benchmark interest rate at the lowest level and almost close to zero until an undetermined deadline. On the other hand, the decline in bond yields also dragged the US Dollar currency to the next level of weakness. Bond yields have fallen to their lowest level with a 10-year tenor in the range of -0.88% from the previous level of -0.56% in mid-March. The shift in investment by market participants from riskier assets to safer assets also dragged down the US Dollar. This switch in investment instruments occurred after the market digested Janet Yellen's clarification statement, she said that interest rates will be raised but this will not be done in the near future.

Forex Daily Analysis Predictions

Today's FOREX prediction on the USDJPY pair is expected to weaken/rise and the recommended OP (Open Position) is BUY at the level of 109.200. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points.
This the daily forex analysis on May 07, 2021 regarding the weakening of the US Dollar. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.