USD/JPY Forecast: Continues To Bounce From Oversold Conditio
(MENAFN- Daily Forex) The usd/jpy bounced a bit during the trading session on Wednesday, as we continue to see the market trying to defend the ¥130 level. Furthermore, later in the day, we will have the FOMC Meeting Minutes, which a lot of people will be paying close attention to. The market will continue to see a lot of volatility, but I think it's starting to try to capture some of the hawkish behavior coming out of the federal reserve , due to the fact that the Federal Reserve chairman continues to reiterate his desire to keep the Economy and monetary policy type. After all, the Federal Reserve has restated the idea of being hawkish more than once, but quite frankly the Wall Street traders have completely ignored it. Advertisement test out your technical skills now! open a free demo account
Sooner or later, they will have to come to grips with the idea that the Federal Reserve is doing everything it can to fight inflation, and that means that rates will have to go higher, just as the US dollar will. The Bank of Japan continues to fight rising rates, but I do think that given enough time they may be in a situation where they have to start printing yen yet again. If that's the case, then this market will go much higher. The ¥130 level course has a major influence on the market due to the fact that we have seen it as a large, round, psychologically significant figure, and an area where we have seen moves previously.Pay Attention to the Bond Markets
On any bounce, the 200-Day ema comes into the picture near the ¥135 level. The 50-Day EMA indicator is starting to slip towards there, kicking off what could be the“death cross”, but it is quite often very late to the party, and it's not entirely uncommon to see the market turnaround right as it happens. This pair is going to be all about the interest rate situation, and therefore you need to pay attention to the bond markets.
Ultimately, I think this is a situation where we do start to recover but if we were to break down below the ¥130 level again, then we will test the ¥128 level. If we break down below there, look out below, because this pair is going to go much lower. After the job summer, I anticipate the market picking a direction for the next month or so.
Ready to trade our daily forex analysis ? We've made a list of the best forex brokers worth trading with.
MENAFN05012023000131011023ID1105390830
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.