USDJPY further declines on differing Fed/BOJ policy outlook.
The USDJPY continues to trend lower as the dollar is deflated by rising bets on the Fed cutting interest rates in the coming months, while the yen rallies on strong signals that the Bank of Japan may begin raising interest rates this month, with the scenario bolstered by solid Q4 GDP data, which show that the economy remains resilient and has likely avoided recession.
USDJPY Technical Outlook
The technical picture on the daily chart is improving, as negative momentum strengthens and converges daily. Tenkan and Kijun-sen are preparing to make bear-cross.
Bears probe once more through shattered Fibo support at 146.82 (38.2% of 140.25/150.88) and pressure next supports at 146.18/12 (200DMA / top of daily Ichimoku cloud) and 145.89 (Feb 1 upper low), with break of these supports to further Weaken the near term structure, exposing the next pivot points at 145.56 (50% retracement) and 145.00 (daily cloud base).
Daily closing below 146.82 Fibo level confirms bearish signal and keeps bears fully engaged.
Bears probe once more through shattered Fibo support at 146.82 (38.2% of 140.25/150.88) and pressure next supports at 146.18/12 (200DMA / top of daily Ichimoku cloud) and 145.89 (Feb 1 upper low).
Caution on oversold situations on the daily chart, which may result in headwinds and slow bears.
Res: 147.12; 147.48; 147.75; 148.37.
Sup: 146.18; 146.12; 145.56; 145.00.
