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Hello dear friends, let's explore USDJPY after a series of strong price increases!
On impact news: the US Dollar (USD), so far, is struggling to gain any meaningful traction amid bets that the Federal Reserve (Fed) will begin interest rate cut cycle in June, supported by US Personal Consumption Expenditures (PCE). Index on Friday. This could further contribute to preventing any meaningful upside move in the USD/JPY pair. For now, traders are looking to the release of key US macro data scheduled for the start of the new month, starting with the ISM Manufacturing PMI on Monday for momentum ahead of Nonfarm Payrolls. (NFP) on Friday.
Conclusion on USDJPY and trend: In light of today's scheduled news, as this factor could bring unpredictable decline, we need to understand that holding steady above the bullish channel limit could giving bears an advantage when entering the market.
In the short term, from a technical analysis perspective: With the current trend, a price decrease is possible. There is evidence that once a resistance level is touched, it will continue its downward movement, as indicated by the RSI line showing an unchanged divergence.
And you, do you expect a wave of USD/JPY depreciation?
On impact news: the US Dollar (USD), so far, is struggling to gain any meaningful traction amid bets that the Federal Reserve (Fed) will begin interest rate cut cycle in June, supported by US Personal Consumption Expenditures (PCE). Index on Friday. This could further contribute to preventing any meaningful upside move in the USD/JPY pair. For now, traders are looking to the release of key US macro data scheduled for the start of the new month, starting with the ISM Manufacturing PMI on Monday for momentum ahead of Nonfarm Payrolls. (NFP) on Friday.
Conclusion on USDJPY and trend: In light of today's scheduled news, as this factor could bring unpredictable decline, we need to understand that holding steady above the bullish channel limit could giving bears an advantage when entering the market.
In the short term, from a technical analysis perspective: With the current trend, a price decrease is possible. There is evidence that once a resistance level is touched, it will continue its downward movement, as indicated by the RSI line showing an unchanged divergence.
And you, do you expect a wave of USD/JPY depreciation?
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Comment:
USD/JPY’s next move depends on the actions of the Fed, according to a BofA strategist. If the Fed cuts the USD/JPY could fall to 142; if not it could rally higher. Intervention is like “leaning against the wind” if the Fed decides not to cut, the market will press higher.
