USD/JPY recovered in the first days of the past week, but met resistance in the 120.00 area forming a bearish engulfing candle on the daily chart.
Technically the pair’s currently toeing with the 55- and 100-day MAs at 119.78 and 119.30 respectively. Strong support is located at 118.50. Decline below that level is needed to make the pair slide to 118.33/00 and 117.00. The near-term bearish scenario will be dropped only in case of recovery above 120.00.
We see the lack of movement as the pair is consolidating ahead of the next week’s key events – the meeting of the US Federal Reserve on Wednesday and that of the Bank of Japan on Thursday.
Let’s focus on Japanese regulator. According to Japanese mass media, the Bank of Japan is planning to lower its inflation forecast. Such decision, if made, is going to be very negative for the yen and, consequently, positive for USD/JPY. At the same time, on the part of the US dollar the pair’s clearly lacking drivers: the Fed is expected to put off the interest rate hike from June to later this year. So, the main trade idea is cautious longs in the 118.90 area on Thursday with modest targets in the 120.40 zone.
Technically the pair’s currently toeing with the 55- and 100-day MAs at 119.78 and 119.30 respectively. Strong support is located at 118.50. Decline below that level is needed to make the pair slide to 118.33/00 and 117.00. The near-term bearish scenario will be dropped only in case of recovery above 120.00.
We see the lack of movement as the pair is consolidating ahead of the next week’s key events – the meeting of the US Federal Reserve on Wednesday and that of the Bank of Japan on Thursday.
Let’s focus on Japanese regulator. According to Japanese mass media, the Bank of Japan is planning to lower its inflation forecast. Such decision, if made, is going to be very negative for the yen and, consequently, positive for USD/JPY. At the same time, on the part of the US dollar the pair’s clearly lacking drivers: the Fed is expected to put off the interest rate hike from June to later this year. So, the main trade idea is cautious longs in the 118.90 area on Thursday with modest targets in the 120.40 zone.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.