USDJPY analysis week 48Fundamental Analysis
The Japanese Yen (JPY) attracted fresh sellers after rising intraday on stronger domestic consumer inflation data amid expectations that rising political uncertainty could delay the Bank of Japan’s (BoJ) interest rate hike plans. Moreover, rising US Treasury yields, supported by expectations that US President Donald Trump’s policies could spur inflation and force the Federal Reserve (Fed) to cut rates slowly, are said to be weighing on the lower-yielding JPY.
In addition, the prevailing risk-on environment is seen as another factor dampening demand for the safe-haven JPY. This, coupled with continued buying interest in the US Dollar (USD), contributed to the USD/JPY pair’s nice intraday recovery of over 80 pips from levels below 154.00. However, concerns that Japanese authorities may intervene in the forex market to support the local currency may deter JPY short sellers from placing strong bets and limit the pair.
Technical Analysis
Looking at the chart USDJPY is in an ascending channel with the price range of 155.800 and 154.000. The 157.600 zone is considered the strongest resistance zone for the week after the price breaks the 155.800 zone. On the other hand, if the ascending channel is broken, there will be a reaction around the support zone of 153.400 and the slide may extend to 151.300.
Trading Signals
BUY USDJPY zone 154.200-154.000 Stoploss 153.800
SELL USDJPY zone 155.800-156.000 Stoploss 156.200
