USDJPY Weekly Prediction: The Bank of Japan Alteration Failed to Motivate, while USD Dip Appears Positive for USDJPY duo.

US dollar vs JPY falls dramatically as NFP shortfall calls additional Federal Reserve interest rate increases into question.

RECAP OF THE PREVIOUS WEEK

The Yen has had an interesting week, yet it did nothing to give insight on the way ahead. The BoJ met last week and tweaked its Yield Curves Control (YCC) policies. Making further tiny stride towards policy standardization.

The Bank of Japan kept its aim for the 10-year JGB yield at about zero percent. Although reinterpreted 1 percent as the top range instead of an upper limit as before. Through doing so, the Bank of Japan issued a soft signal to markets. Implying that the Bank of Japan might not act promptly once the yield near 1 percent. Following that, the USDJPY advanced over the 150.00 level.

Technical Perspective

The Bank of Japan, on the other hand, appears to have been in favor; While the week went, the dollar’s value lost a bit of its initial week strength. Whereas a decrease in the yield gap aided the Japan’s yen. The FOMC session in the United States further reinforced that. Since market investors started to increase their wagers that the Federal Reserve’s rate hiking run was over. USDJPY duo fell low of the previous year’s peak & began to fall amid a disappointing NPF and Unemployment data on Friday evening.  Having contributed to pushing USDJPY below the level of 150.00.

THE NEXT WEEK: The Federal Reserve talk will rule

The schedule is going to be substantially quieter the following week after a spectacular week of substantial news. There aren’t any severe impacts releases of data from Tokyo. However, we will have access to the Bank of Japan minutes from meetings. That may give a greater understanding into officials’ opinions and future perspective.

The United States will likewise experience a lull in statistics updates. including talks by Fed Chair Powell scheduled on the 8th & November 9. Prior to the publication of Michigan Consumer Sentiment figures. It will certainly be intriguing to listen to Fed Chair Powell’s remarks.  And if he will challenge the dovish paradigm that appears to be forming over prospective rate increases. Yet, following Friday’s employment report, the Federal Reserve Chairman may accidentally lend gasoline to the prevailing dovish sentiment.

Glancing at the daily graph, the USDJPY duo fell shy of the 2022 peak by around 20 ticks. For the present, we need an average daily candle closure under the 149.00 grip.  That served as the last swinging bottom and suggests a structural shift. Here is a support area just under this level, with the 50-day MA at 148.63, which might allow for an immediate retracement with a potential bearish resumption. Any shift to the higher will undoubtedly give a higher risk-reward chance for buyers in mind. Considering the 150.00 level being a critical pivot level for the duo.

Support and Resistance Key Levels

Support Degrees

149.00 148.63 146.54

Levels of Resistance

150.00 150.80 152.00