The oil prices rally and world central banks’ dovish monetary policy caused by the Covid-19 pandemic were the main reasons for current inflation growth…
USD/JPY: OUTLOOK FOR AUGUST 25 - SEPTEMBER 1
2019-11-11 • Updated
USD/JPY consolidated within the downtrend channel drawn from July highs. The pair has now approached the resistance line of this channel and we are soon to see a breakthrough to the either side.
Tokyo CPI for August was encouraging: inflation accelerated from 0.2% to 0.5% y/y. The 2% inflation target is still very far away, but some progress has been made.
Next week Japan will release unemployment rates, retail sales, industrial production, consumer confidence and other indicators. Remember though that USD/JPY depends more on the figures out of the United States. The US will release consumer confidence on Tuesday, ADP employment report and preliminary GDP for the second quarter on Wednesday, core PCE price index and personal spending on Thursday and NFP together with ISM manufacturing PMI on Friday.
The current resistance line at 109.80 is reinforced by the former support and now resistance line connecting April and June lows. Support is at 108.80. A decline below this level is needed to bring the pair down to 108.00 and 107.50.
Similar
How may the USD be impacted by the impeachment process? Read and prepare.
The USD has started the day on a positive footing and pushed USD/JPY upwards. What's next?
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...