The Japanese yen is at an intersection as the US dollar falls in reaction to Fed comment threads.

Market Analytics and Considerations

Key Notes

• The Japanese Yen is under pressure following the release of inflation figures.
• The US dollar fell somewhere else, and the Bank of Japan has its work cut ahead of it.

Regardless of the fact that the widening DXY (USD) index hit a 7-month dip on Monday, the Japanese Yen has been little altered in the week. So far, 

Japanese inflation it seems to be gaining steam, with the lede Tokyo CPI reaching a forty-year peak of 4.0percentage – point year on year at the end of December. 2022

On the headlines, USD/JPY has been little altered, but the Bank of Japan’s ability to maintain a loose monetary policy environment setup may be put into question.

Analysis – OF THE USD/JPY

USD/JPY attempted to break the top end of a downward pattern stream, but has since withdrew within it. The movement was also unable to preserve its stance just above 21-day simple moving average 

Thresholds and previous highs in the 134.50-134.80 spectrum could provide resistance. Support may be found on the downtrend at the breakpoints and prior low points of 131.35, 131.25, 130.57, 130.40, as well as 129.50.

Daily SMA

Indicators