The USDJPY has risen significantly above 135.00 as the Bank of Japan maintains its ultra-dovish stance.
In the Asian session, the USDJPY pair broke over the critical resistance level of 135.00. Buyers are interested in the asset. After the release of the dovish Bank of Japan (BoJ) April monetary policy meeting minutes.
Members of the Bank of Japan supported the continuation of policy easing in order to achieve stable inflation. While discussing an escape from ultra-dovish policy, members of the Bank of Japan stated. That the central bank should assess the weight of risk associated with the policy change attitude before making a decision.
However, one member suggested that the danger of missing the price target due to a premature policy shift should be prioritized over the risk of altering policy too late.
Meanwhile, the S&P500 futures are trading turbulent in the Asian session. Stocks in the United States were the talk of the town on Friday, as investors ignored worries of the US financial crisis and debt limit difficulties in favor of optimism spurred by the Federal Reserve’s (Fed) policy-tightening pause. The general market sentiment appears to be upbeat, with risk-sensitive assets gaining traction.
On Tuesday, US President Joe Biden and Republicans will meet to discuss the US debt ceiling.
The US Dollar Index (DXY) has returned to approximately 101.33 following a brief rebound, as investors are concerned about the result of a meeting between US President Joe Biden and Speaker Kevin McCarthy and other legislative leaders on Tuesday. Delegates are anticipated to negotiate increasing the US debt ceiling since a delay would cost millions of jobs and economic growth.
In addition, the US Treasury has failed to make certain payments. would have an impact on the US economy’s long-term prospects.
Scope Ratings has placed the United States’ A long-term issuer and senior unsecured debt ratings in local and foreign currency under consideration for a possible reduction owing to longer-run concerns connected with the abuse of the debt limit mechanism, according to Reuters.
Daily Trends
| Daily SMA20 | 134.41 |
| Daily SMA50 | 133.88 |
| Daily SMA100 | 132.84 |
| Daily SMA200 | 136.99 |
