USDJPY lowered due to the retreating dollar
<Fundamental>
Increasing fatigue from strong dollar performance and reduced safe-haven demand due to easing geopolitical tensions in the Middle East have halted the dollar's ascent. The Fed's indication of a potential end to quantitative tightening(QT) due to worries about declining market liquidity also limited the dollar's gains. JP Morgan forecasts that the Fed might conclude the entire QT in the coming months.
Meanwhile, Japan's October services inflation stood near 3%, increasing the likelihood of the BoJ's interest rate hikes. Governor Kazuo Ueda highlighted ongoing wage-led inflation, supporting the central bank's capacity to raise rates.
<Technical>
After breaking below the ascending channel’s lower bound, USDJPY fell to 152.80. EMA21 has death-crossed EMA78, indicating a shift to bearish momentum. If USDJPY breaks below the support at 152.70, the price may fall further to 150.00. Conversely, if USDJPY reenters within the channel and rises above both EMAs, the price could gain upward momentum toward 156.70.
Increasing fatigue from strong dollar performance and reduced safe-haven demand due to easing geopolitical tensions in the Middle East have halted the dollar's ascent. The Fed's indication of a potential end to quantitative tightening(QT) due to worries about declining market liquidity also limited the dollar's gains. JP Morgan forecasts that the Fed might conclude the entire QT in the coming months.
Meanwhile, Japan's October services inflation stood near 3%, increasing the likelihood of the BoJ's interest rate hikes. Governor Kazuo Ueda highlighted ongoing wage-led inflation, supporting the central bank's capacity to raise rates.
<Technical>
After breaking below the ascending channel’s lower bound, USDJPY fell to 152.80. EMA21 has death-crossed EMA78, indicating a shift to bearish momentum. If USDJPY breaks below the support at 152.70, the price may fall further to 150.00. Conversely, if USDJPY reenters within the channel and rises above both EMAs, the price could gain upward momentum toward 156.70.
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