USD/JPY forecast:
- USD/JPY The last few days have been lacking in certainty of direction. price compressed between support and resistance
- However, volatility could accelerate next week. FOMC This decision could change current market dynamics
- no change Financial policy As expected, the Fed could take a more dovish position on the back of significant progress on the inflation front.
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USD/JPY has lacked directional certainty in recent sessions, hovering between overhead resistance at 148.80 and horizontal support at 147.40. But next week could see more significant developments as the Fed’s decision increases volatility in financial markets.
Focusing on Fed announcements, while no changes in monetary policy are expected at the January meeting, the Fed will remove any tightening bias from its post-meeting statement and adopt a more neutral stance given the accelerated progress on the inflation front. May accept messages.
Moreover, traders should not be surprised if the latest conclave leads to further discussion on comprehensive criteria for lowering interest rates. In that sense, if Powell signals that deliberations have reached a more advanced stage, markets could move towards pricing in a higher probability of a March rate cut, which would be a bearish outcome for the US dollar. Dew.
Conversely, if central banks maintain a hawkish tone and do not cut rates in earnest in the near term, fearing that easing financial conditions could reignite inflationary pressures, yields could rise across the board. There is a possibility that this scenario will come true. Supports USD/JPY.
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Technical analysis of USD/JPY
After falling earlier this week, USD/JPY managed to bounce off the support at 147.40, which corresponds to the 100-day simple moving average. If the rally accelerates in the coming trading sessions, resistance will appear at 148.80/149.00. If it’s even stronger, everyone will reach psychological level 150.00.
In the case of a bearish reversal, as mentioned above, the first important floor to note appears at 147.40. The bears may struggle to push the price decisively below this threshold, but a successful breakout could lead to a pullback to 146.00 and then 145.50.
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change |
long |
shorts |
OI |
| every day | -1% | -1% | -1% |
| weekly | -1% | 0% | 0% |
