FX.co ★ USD/JPY analysis for February 24 2021 - Strong upside impuslive movement with potential for test of 106.22

Prior -5.1%

• Market index 790.6 vs 892.6 prior
• Purchase index 264.9 vs 299.5 prior
• Refinancing index 3,848.1 vs 4,337.0 prior
• 30-year mortgage rate 3.08% vs 2.98%

It looks like the housing market is not taking too kindly to the higher rates as both purchases and refinancing activity took a heavy dip in the past week. After the more robust period following the initial impact of the virus crisis, this may be tricky times for the housing market and is something that the Fed will have to watch closely if rates continue t

Further Development

Analyzing the current trading chart of USD/JPY , I found that the buyers took control from the sellers and completed that downside correction ABC.

Stochastic is going very aggressive to the upside, which is another sign of the strength.

Key support is set at the price of 105,07.