Recent Market Dynamics The Japanese Yen has recently attracted some buyers and recovered a portion of the losses incurred after Wednesday's US CPI release. Concerns about potential intervention by Japanese authorities, coupled with a weaker risk tone, have supported the JPY and exerted pressure on USD/JPY. Divergent Monetary Policy Expectations Divergent expectations regarding the policies of the Federal Reserve and the Bank of Japan are expected to limit any significant corrective moves for the currency pair. While the Fed is moving towards a tightening policy, the BoJ maintains a more accommodative stance. Key Levels of Resistance and Support USD/JPY has recently surpassed the resistance level at 153.00, paving the way towards the next significant resistance level. However, risks of intervention by Japanese authorities could lead the pair towards the next key support levels. Performance During the North American Session Despite warnings about potential Japanese intervention, USD/JPY has seen an increase during the North American session, staying above the 153.00 threshold. Strength of the US Dollar The US Dollar is gaining ground across the board, with the US Dollar Index (DXY) reaching its highest level since November 2023. This is partly due to Wednesday's inflation report, which favored a positive reaction for the dollar. Reaction to US Economic Data Recent US economic data, particularly on inflation, has bolstered the strength of the US Dollar despite the weaker-than-expected Producer Price Index (PPI) compared to the Consumer Price Index (CPI). Future Outlook Considering that US economic data indicates the Federal Reserve's work is not yet complete, it is expected that the US Dollar will continue to strengthen in the near term. Additionally, US Treasury yields have increased, further enhancing the outlook for the American currency. Japanese Authorities' Reactions On the Japanese front, Finance Minister Suzuki has stated that Japanese authorities will not rule out any measures to address excessive yen volatility, highlighting a high sense of urgency in monitoring the currency situation.
That's interesting. I noticed you used the Fibonacci retracement to align with the buy zone—a good kind of confluence. Let's see how this plays out. I'll keep an eye on it.
yusukeang
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hard to say,jpy always make me disappointed. Now looking like drop,then suddenly fly Japan government is useless
JohnTrade77
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@yusukeang Maybe your analysis needs a little refining?
yusukeang
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@JohnTrade77, I quit already Too believe Japan government Always give warning,say will intervention at which level Believe Japan government will do anything to help their country,more talk no action I lost 2000usd because believe Japan government Now I just want to see usdjpy fly to 160
Forex48_TradingAcademy
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Hi traders, rate the USDJPY idea. What do you think about it?