USDJPY is once again approaching the 160 level
Updated
Japanese officials recently intervened in the foreign exchange market as the USD/JPY exchange rate approached the 160 level. However, this time the upward movement has been more gradual and less volatile, prompting no action from Japanese officials.
The USD/JPY pair is currently trading above 157.00 and has rebounded strongly off the 50-day SMA in early May. The issue of yen weakness is likely to persist due to the significant interest rate differential between the United States and Japan, supporting the carry trade.
The USD/JPY pair is currently trading above 157.00 and has rebounded strongly off the 50-day SMA in early May. The issue of yen weakness is likely to persist due to the significant interest rate differential between the United States and Japan, supporting the carry trade.
Comment
Comment
From a technical perspective, USD/JPY is trending neutral to bearish as more negative technical signals appear. This, coupled with the release of decelerating inflation, could put pressure on the greenback and push the pair lower. Momentum shows that sellers are dominant, paving the way for the next downtrend.Comment
USD/JPY steady above 154.40 despite growing expectations of BoJ rate hike The yen extended its decline for the second straight session on Tuesday. Traders remain cautious ahead of the Bank of Japan's (BoJ) policy meeting on Wednesday, which is likely to see the bank raise interest rates. The market is predicting that the BoJ could raise interest rates by 10bps to 0.1% and is expected to announce plans to cut its bond buying program.
Comment
USD/JPY is down nearly 13% from its July peak and stocks are headed for a bearish market. Japanese government bond yields also dropped the most in two decades. The slide in bond yields weighed on banks' earnings, sending shares of Mitsubishi UFJ Financial Group, the nation's largest lender, down a record 21% during the session.Comment
USD/JPY is trading below the 50-day and 200-day EMA, confirming the bearish bias. If USD/JPY recovers to 142.5, it will open up the possibility of testing the resistance area at 143.49. In case of overcoming the threshold of 143.49, buyers can push the exchange rate towards the next resistance mark at 145.89. It is important to note the impact of Japanese GDP figures and key US economic indicators. Conversely, if the exchange rate falls below 142, it could trigger stronger selling momentum, towards the support area of 141.03. The 14-day RSI is at 32.46, showing that USD/JPY may continue to fall to the 142 area before entering an oversold state.
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