All Articles Tagged - USDJPY

Daily Market Comment – Fed set to raise rates, but will Powell signal a pause?

Posted on March 22, 2023 at 9:45 am GMT

With banking nerves calming down, Fed is set to raise interest rates today Market reaction will depend mostly on rate projections and Powell’s tone Sterling advances after hot inflation numbers telegraph BoE rate hike Critical Fed decision ahead One of the most important Fed decisions in recent history lies ahead. With the banking turmoil receding for now, traders have priced in an 85% probability for a quarter-point rate increase and a 15% chance for no action at all. If the [..]

Technical Analysis – USDJPY finds support ahead of FOMC, but bears still loom

Posted on March 22, 2023 at 9:03 am GMT

USDJPY turned green ahead of Wednesday’s FOMC policy announcement, pivoting on the tentative support trendline that joins the lows from January and February on Tuesday. Discouragingly though, the pair could not close above Monday’s high of 132.64, unable to complete a bullish engulfing candlestick pattern. The flattening 50-day simple moving average (SMA) is blocking bullish actions around the same area for the third consecutive day, while not far above, the 23.6% Fibonacci retracement of the 151.93-127.21 downleg at 133.00 might keep traders [..]

Fed faces dilemma, hit pause or keep raising rates? – Forex News Preview

Posted on March 20, 2023 at 3:22 pm GMT

One of the most important Fed decisions in recent history lies ahead on Wednesday. Markets think the banking episode could prevent the Fed from raising rates and are pricing in rate cuts by the summer. This speculation seems overblown. Banks have already been supported and inflation is still raging. That sets the stage for a rate increase and elevated rate projections, which could revive the dollar. Breaking point With the banking system under enormous stress, investors believe the Fed will [..]

Daily Market Comment – Banking turmoil keeps sentiment fragile; investors want the Fed to pivot

Posted on March 20, 2023 at 8:53 am GMT

Banking fears persist despite contingency plans Yen gains as equities and bond yields slide Fed is seen pausing and initiating rate cuts Gold skyrockets above $2,000, oil falls to 15-month low Flight to safety continues on banking contagion fears The US dollar underperformed against all the other major currencies on Friday, with the safe-haven yen taking the most advantage of its weakness. Although the dollar rebounded somewhat today, it remains on the back foot against its Japanese peer. Despite the [..]

Week Ahead – Fed decision to fuel volatility in nervous market

Posted on March 17, 2023 at 11:51 am GMT

With cracks appearing in the US banking system, markets think there’s a chance the Fed won’t raise rates next week. But considering that the Fed has already taken measures to ease financial stress and that inflation is still raging, the most likely outcome is a rate increase accompanied by high rate projections, which could boost the dollar. The Bank of England and the Swiss National Bank meet as well. Fed dilemma It’s going to be a difficult meeting for Fed [..]

Technical Analysis – USDJPY recoups losses after sharp drop

Posted on March 15, 2023 at 9:17 am GMT

USDJPY has been in a massive downtrend after peaking at the 32-year high of 151.94 in October. Even though the pair exhibited some signs of recovery, trading within an upward sloping channel in the short term, this bullish pattern was recently broken to the downside. The momentum indicators currently suggest that the recent decline is slowly reversing as near-term risks are tilting to the upside. Specifically, the RSI has jumped above its 50-neutral mark, while the stochastic oscillator posted a bullish [..]

What does the US banking crisis mean for markets? – Special Report

Posted on March 14, 2023 at 3:32 pm GMT

Cracks have started to appear in the US financial system with the collapse of Silicon Valley Bank. Even though the Fed stepped in with a rescue plan, it wasn’t enough to calm nerves in markets. Instead, investors are betting this episode will force the Fed to stop tightening. Such speculation seems exaggerated, and if Fed officials push back against it next week, stock markets could resume their decline while the dollar storms higher. Financial stress The collapse of Silicon Valley [..]

Daily Market Comment – Bank stocks pummelled but some calm restored ahead of US CPI

Posted on March 14, 2023 at 10:08 am GMT

Financial stocks remain pressured but broader selloff eases as panic subsides US inflation in the spotlight after sharp repricing of Fed rate hikes Gold and cryptos softer after surge, yields steadier, dollar edges up Bank rout turns global but wider equities rebound Equity markets were showing some signs of life on Tuesday following a brutal selloff in the preceding days that was led by a plunge in banking stocks triggered by the collapse of SVB and Signature Bank. Emergency measures [..]

Technical Analysis – USDJPY bounces off lows after plunge; could be oversold

Posted on March 13, 2023 at 3:23 pm GMT

USDJPY is attempting to reclaim the 133 handle after earlier sliding to a one-month low of 132.27. Only last week, the pair had climbed to a 12-week peak of 137.90 before coming under selling pressure. The selloff accelerated on Monday but the momentum indicators in the 4-hour chart are warning of oversold conditions. The RSI has just slipped below the 30 mark, while the MACD has dived deep into negative territory and is well below its red signal line. Price [..]

Technical Analysis – USDJPY slumps more than 4% after the pullback off 200-day SMA

Posted on March 13, 2023 at 2:06 pm GMT

USDJPY is printing the fourth consecutive red day and is meeting the 50-day simple moving average (SMA) after it failed to jump above the 200-day SMA near 137.90. The RSI is heading south beneath the neutral threshold of 50, while the MACD is losing momentum below its trigger line in the positive territory. Any moves lower could take the bears until the 129.80 support level ahead of the 127.25-128.00 restrictive region, shifting the outlook to neutral. A slip beneath the [..]

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