USD/JPY showed a moderate recovery during the Asian session, trading in the 159.20-159.25 range.
✅ Central Bank Focus: Awaiting FOMC & BoJ
This week is a defining period for the monetary policies of two major economies:
- The Fed (Wednesday Night): The Federal Reserve is expected to respond to the risk of energy inflation due to the war in the Middle East. If the Fed signals a higher-for-longer stance, USD/JPY risks breaking through 160.00.
- Bank of Japan (Thursday): Market focus is on whether the BoJ will provide any hints about raising interest rates or reducing bond purchases to support the weakening Yen.
- Inflation War Sentiment: The escalation of the US-Israel-Iran conflict, which has disrupted oil supplies, continues to exert upward pressure on inflation, which theoretically supports the strengthening of the dollar against the yen due to the widening interest rate differential.
✅ Technical Indicators: Moderate Bullish Momentum
Technically, buyers remain in control in the short term:
- 200-H4 SMA (158.40): As long as the price remains above this moving average, the uptrend is considered intact.
- RSI (49): Located just below the neutral centerline. This indicates that despite the uptrend, the market is not overbought, so the movement is likely to be consolidative before major news releases.
✅ Key Levels to Watch
- Psychological Resistance (160.00): A crucial round number level. A clear close above this level would pave the way for a retest of the multi-decade high.
- Nearest Upward Boundary (159.75): The highest level since July 2024. This area serves as a major barrier before the price reaches 160.00.
- Intraday Resistance (159.60): The highest zone in the most recent daily trading session, which serves as the nearest recovery target.
- Support (159.00): The daily psychological lower limit. A break below this level will lead the price to test stronger support.
- Trend Resistance Line (158.40): The area of the 200-day SMA (H4). If the price falls below this level, the current bullish bias will be lost and the focus will shift to a decline towards 158.00.
✅ Central Bank Focus: Awaiting FOMC & BoJ
This week is a defining period for the monetary policies of two major economies:
- The Fed (Wednesday Night): The Federal Reserve is expected to respond to the risk of energy inflation due to the war in the Middle East. If the Fed signals a higher-for-longer stance, USD/JPY risks breaking through 160.00.
- Bank of Japan (Thursday): Market focus is on whether the BoJ will provide any hints about raising interest rates or reducing bond purchases to support the weakening Yen.
- Inflation War Sentiment: The escalation of the US-Israel-Iran conflict, which has disrupted oil supplies, continues to exert upward pressure on inflation, which theoretically supports the strengthening of the dollar against the yen due to the widening interest rate differential.
✅ Technical Indicators: Moderate Bullish Momentum
Technically, buyers remain in control in the short term:
- 200-H4 SMA (158.40): As long as the price remains above this moving average, the uptrend is considered intact.
- RSI (49): Located just below the neutral centerline. This indicates that despite the uptrend, the market is not overbought, so the movement is likely to be consolidative before major news releases.
✅ Key Levels to Watch
- Psychological Resistance (160.00): A crucial round number level. A clear close above this level would pave the way for a retest of the multi-decade high.
- Nearest Upward Boundary (159.75): The highest level since July 2024. This area serves as a major barrier before the price reaches 160.00.
- Intraday Resistance (159.60): The highest zone in the most recent daily trading session, which serves as the nearest recovery target.
- Support (159.00): The daily psychological lower limit. A break below this level will lead the price to test stronger support.
- Trend Resistance Line (158.40): The area of the 200-day SMA (H4). If the price falls below this level, the current bullish bias will be lost and the focus will shift to a decline towards 158.00.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.