Nov 03, 2022
VOT Research Desk
Even as Tokyo celebrates the holiday known as Culture Day, USD/JPY bears maintain control for the third day in a row. Having said that, the US dollar’s inability to maintain its post-Fed gains as well as sluggish yields may be to blame for the quote’s most recent loss.
Fears caused by North Korea’s missile tests aimed at Japan and South Korea could also put downward pressure on the yen pair.
According to Reuters, North Korea launched an unidentified ballistic missile toward the East Sea, which afterwards flew over Japan.
As a result, Japan issues a warning to its citizens to seek shelter from the threat of a North Korean missile. The US has recently warned Pyongyang about such efforts and stoked market jitters in Asia.
Going forward, a lack of Japanese traders may limit the chances of a USD/JPY recovery, and while traders wait for the US ISM Services PMI, which is predicted to decline to 55.5 in October from 56.7 in previous readings, the sluggish yields put downward pressure on the pair.
As a result of the strong ADP report, Friday’s US Nonfarm Payrolls (NFP) will be crucial after that.
The six-week-old ascending support line, which is at the latest near 146.00, is the target for USD/JPY bears if the 21-DMA support, now located near 147.60 by the time of press, is broken to the downside.
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Daily SMA20 147.63 |
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Daily SMA50 144.54 |
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Daily SMA100 140.09 |
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Daily SMA200 131.69 |
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