Fundamental
Overview
We haven’t got much action
in the US Dollar following the FOMC
Policy Decision as the central bank kept everything unchanged and Fed Chair
Powell maintained a neutral stance as expected. He did sound optimistic which
could see some weakness in the greenback but overall, they are waiting for more
progress on inflation and more clarity on Trump’s policies.
On the JPY side, as a
reminder, the BoJ hiked interest rates by 25 bps as widely expected at the
last meeting but didn’t offer much in terms of forward guidance which capped
the JPY gains as the market already expected a hike and then another some time
in the second half of this year. The yen continues to be driven more by the
bouts of risk off sentiment and falling Treasury yields.
USDJPY
Technical Analysis – Daily Timeframe
USDJPY Daily
On the daily chart, we can
see that USDJPY is consolidating around the major trendline with the sellers being in
control for now. The buyers will likely step in around these levels to position
for a rally into the 160.00 handle. The sellers, on the other hand, will pile
in with a defined risk above the trendline to target a drop into the 149.00
handle next.
USDJPY Technical
Analysis – 4 hour Timeframe
USDJPY 4 hour
On the 4 hour chart, we can
see that the price continues to break below the 154.80 support zone with the sellers adding to their bearish
bets. The buyers will want to see the price rising back above the 155.00 handle
to regain some conviction, while the sellers will keep on piling in here with a
defined risk above the zone to target new lows.
USDJPY Technical
Analysis – 1 hour Timeframe
USDJPY 1 hour
On the 1 hour chart, there’s
not much we can add here as the buyers will look for a rally back above the
155.00 handle, while the sellers will keep control below the level and target
new lows. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we get the US Q4 GDP report and the latest US Jobless
Claims figures. Tomorrow, we conclude the week with the Tokyo CPI, the US PCE
and the US Employment Cost Index.
