USD/JPY tests 145 as dollar struggles to catch a break
Aug 21 (Reuters) -The dollar can’t seem to catch a break at present, which in turn has seen USD/JPY trade below 145, albeit briefly during the APAC session, with the key to the U.S. currency's near term outlook now residing in Jackson Hole.
There was more interest than usual on the annual payrolls revisions, though a downgrade of 818k was in the middle of the range of estimates.
Meanwhile, the data is also somewhat stale given it is for the year prior to March 2024 and thus the impact on the Fed’s policy outlook should be minimal.
Focus remains squarely on the upcoming Jackson Hole speeches. Though, with the dollar now the most oversold since July 2023 – according to the 14-day RSI – further weakness is likely to be harder to come by, unless of course, Fed Chair Jerome Powell, clearly keeps the risk of a 50bps September cut on the table.
However, with recent U.S. data pushing back on the growth scare hyperbole that stemmed from the July non-farm payrolls report, a signal that the Fed will alter policy gradually appears more likely. In which case, that may provide some relief for the greenback.
For now, USD/JPY support resides at 145, whereby a firm break would open up for a test of 144. On the topside, the 55-hour MA (146.07) marks near-term resistance, with 146.97-147.08 above also capping rebounds.
For more click on FXBUZ
USDJPY hourly chart https://tmsnrt.rs/3WX8XwE
Dollar RSI https://tmsnrt.rs/3Xnz4hP
(Justin McQueen is a Reuters market analyst. The views expressed are his own.)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
