Overview
On Wednesday, the USD/JPY rose by 0.53%, closing at 146.342. It dropped to 145.303, but reached a high of 146.406 before settling down due to FOMC meeting minutes.

On Wednesday, the USD/JPY rose by 0.53%, closing at 146.342. It dropped to 145.303, but reached a high of 146.406 before settling down due to FOMC meeting minutes.

However, we anticipate some attention in the export figures to China. Weak demand is probably going to put pressure on riskier assets and strengthen the currency.

China worries will probably influence the Bank’s decision-making in the near future.

Numbers from the 147 Philly Fed Manufacturing Index and data on US jobless claims will also give guidance. A decrease in unemployment claims would cast doubt on the idea of a softening US labour market and support hawkish Fed wagers.

The Philly Fed Manufacturing report is expected to lose out to unemployment claims, as its impact on the Fed is uncertain due to less than 30% of the US economy being manufacturing.

Daily chart
USD/JPY remains above the 144.30–145.00 resistance band, with bullish near- and longer-term price signals. A 70.20 RSI suggests a run at 147.00, while a fall below this level could lead to bears at sub-144.

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