USD/JPY turned decrease, monitoring the dip in UST yields (on dovish Fed rhetoric) whereas oil costs maintain losses (as geopolitical tensions in Center East subsided for now). USD/JPY was final at 145.62 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Bullish momentum on each day chart
“Feedback from BoJ’s Tamura additionally noticed JPY strengthened reasonably. Specifically, he stated that BoJ may have to boost rates of interest decisively if upside inflation dangers rise, even when it doubtlessly faces uncertainty forward. He additionally talked about that inflation might attain its 2% goal prior to anticipated. Don’t see 0.5% as barrier for BoJ charge hikes and BoJ should increase charge in well timed, applicable trend with out being too fast or too late.”
“We proceed to search for USDJPY to commerce decrease, premised on Fed prone to reduce in the end and BoJ resuming coverage normalization whereas ‘promote USD’ narrative stays alive. Bullish momentum on each day chart reveals is fading whereas RSI fell. Headstone doji (fashioned the day earlier than) is often related to a bearish reversal and had seen follow-thru in value motion in a single day.”
“Dangers skewed to the draw back however key help at 144.20/40 ranges (23.6% fibo, 21, 50 DMAs). Decisive break beneath ought to see extra draw back play out. Resistance at 146.60 (100 DMA), 147.15 (38.2% fibo retracement of 2025 excessive to low).”
