Market Analytics and Considerations
Key Notes
- The Japanese Yen is in trouble following inflation figures.
- Other than Japan, the US Dollar declined, and as such the BoJ has its down sides out for it.
Despite the wider DXY (USD) index hitting a 7-month trough on Monday, the Japanese Yen hasn’t altered significantly versus the dollar so far this week. The currency market has been rather quiet during the Asian session thus far and today.
The news had limited effect on USD/JPY, but it may draw more attention to the Bank of Japan’s capability to maintain a loose monetary policy environment and scenario. According to Banks, Mary Daly, and Raphael, the Fed funds target rate is expected to rise over 5% and remain there for a significant period of time.
Today’s price of crude oil has dipped a little, with the WTI futures contract hovering about US$ 76.40 bbl and the Brent contract hovering near US$ 79.25 bbl. Bullion is stable and hovering at $1,870 per ounce.
Analysis – For USD/JPY
A falling trend channel was attempted to be broken by USD/JPY, but it has now slipped back within. Additionally, the rally failed to maintain its momentum above the 21-day SMA
The thresholds and previous tops in the 134.50 – 134.80 zone may act as resistance. Supporting on the downward might well be found at the previous lows and breakpoints at 131.35, 131.25, 130.57, 130.40, & 129.50.
