Yen Weakens Despite Japan's Deflation Exit

The USD/JPY pair is rising, reaching 148.28 on Friday. The US dollar is strengthening across the market following the release of US retail sales data.
RoboForex | 221 ngày trước

By RoboForex Analytical Department

The USD/JPY pair is rising, reaching 148.28 on Friday. The US dollar is strengthening across the market following the release of US retail sales data.

This information is prompting market participants to reassess their expectations for the future of the US Federal Reserve's interest rate policy. The Fed could interpret strong retail sales as a significant inflationary factor, potentially delaying the timing of any rate cut.

On Friday, Japan's Finance Minister Shunichi Suzuki stated that the Japanese economy is no longer suffering from deflation, as there is a strong trend towards wage growth. This statement is particularly noteworthy as previous comments from officials, including the Prime Minister, suggested the country had yet to fully emerge from a deflationary state.

According to Suzuki, the government has mobilised all efforts to support this wage growth trend.

The next Bank of Japan (BoJ) meeting is scheduled for next week, and high expectations surround its outcome. The interest rate could finally move out of negative territory, currently at -0.1% annually. The BoJ remains the only major central bank that maintains negative borrowing costs.

Technical Analysis of USDJPY

On the H4 chart, USDJPY has completed a growth wave to 148.64. Today, we consider the likelihood of forming a consolidation range below this level. Exiting upwards from this range could open the potential for a growth wave to 149.20, with the trend possibly continuing to 150.00. The MACD oscillator confirms this scenario, with its signal line breaking above zero and aiming for new highs.                   

On the H1 chart, USDJPY is forming a consolidation range around 148.22. We expect an upward exit from this range and the continuation of the growth wave to 149.20. Following the completion of this level, a correction back to 148.22 (testing from above) is possible. Subsequently, the growth is expected to reach the main target of the wave at 150.00. The Stochastic oscillator supports this scenario, with its signal line above the 20 mark and ready to move towards 80.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

read more
U.S Dollar Jumps on Heightens Treasury Yield

U.S Dollar Jumps on Heightens Treasury Yield

The U.S. dollar has continued to strengthen against major currencies, supported by a sharp rise in long-term Treasury yields, which have reached their highest level since July. The market appears to be pricing in a soft landing by the Federal Reserve, particularly as the U.S. presidential election nears.
PU Prime | 3h 47phút trước
US Dollar Gains Amid Higher Yields and Political Uncertainty

US Dollar Gains Amid Higher Yields and Political Uncertainty

The U.S. dollar has recently surged to new highs, buoyed by a breakout in the dollar index, which surpassed a critical technical resistance level near 103.80. This rally has been largely driven by increasing U.S. Treasury yields, particularly the 10-year yield, which has climbed past its 200-day moving average and is now hovering just below 4.2%.
ACY Securities | 4h 23phút trước
USDJPY faces a pass or fail test

USDJPY faces a pass or fail test

USDJPY extends consolidation around August’s bar. Technical signals weaken, cannot warrant a bullish trend reversal. US retail sales, jobless claims due on Thursday at 12:30 GMT
XM Group | 7 ngày trước