(MENAFN- Daily Forex) The sharp contrast between the policy of the Japanese central bank, which adopts an accommodative policy to stimulate the Japanese economy, and the Federal Reserve, which still supports the increase in US interest rates to contain record inflation and reach the bank's goal of 2% . All this guarantees the price of the usd/jpy currency pair . The move is in a strong upward path, as a result of which the resistance level of 138.74 was tested, and for several sessions the bulls tried to penetrate it, because it will then support the move towards the psychological resistance 140.00. Advertisement ready to make your money work for you? start trading now US economic data, US central bank signals, and agreement on the US debt ceiling are factors that will determine the fate of the currency pair in the coming period. US Federal Reserve Bank of Minneapolis President Neel Kashkari said bank capital requirements should be raised significantly to help shore up financial institutions against distress. "Having access to much higher levels of capital is our only chance to build real resilience in our financial system," Kashkari said in an article published Monday on the Minneapolis Federal Reserve Bank's website. And“I urge us to have the courage to take the hard path and address the fundamental fragility of the banking sector.” The push to raise capital requirements comes amid stress in the US banking sector that has seen several regional lenders collapse this spring, including a Silicon Valley bank in March. Fed officials said they are watching to see how banks tighten lending conditions in the aftermath of the events, though Kashkari made no explicit comments about monetary policy in his article.Kashkari, is a former banker with Goldman Sachs Group Inc. He, who worked at the US Treasury during the 2008 financial crisis, has previously pushed for stricter rules for bank capital, although the position gives him no formal role in writing US regulatory policy. Kashkari added that while the source of future crises is unknown, higher levels of monetary capital would protect against "almost all" scenarios.Dollar expectations against the Japanese yen today: The general trend of the USD/JPY currency pair is still bullish. The bulls have the opportunity to move it towards the psychological resistance level of 140.00 strong, especially if the US debt ceiling was agreed upon and the readings of the US economic data results came out stronger than expectations. The currency pair's move towards the support level of 136.40 will be important to stop the current upward path.
Ready to trade our daily forex forecast ? Here's a list of some of the best online forex trading platforms to check out.
MENAFN23052023000131011023ID1106300005
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.