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August 23 – The trade dispute between the US and Canada has escalated further, with Canadian Prime Minister Mark Carney announcing that Canada will impose retaliatory tariffs on US imports starting September 8. Carney stated on Saturday, “We are reluctantly taking this step because we recognize that it will increase costs for Canadians, reduce purchasing options, hurt innocent American businesses and states, and hinder cooperation between our two countries.” He said the retaliatory tariffs will primarily target steel, dairy products, home appliances, agricultural equipment, pulp, paper products, and electronics, with more details to be released in the coming days. Following the breakdown of trade negotiations on Friday evening, the US imposed 50% tariffs on hundreds of Canadian goods on Saturday, totaling approximately $20 billion, including plywood, alcoholic beverages, electrical equipment, and hockey equipment.On August 23, Russian President Vladimir Putin stated on August 22 that the Ukrainian armed forces had been launching missile and drone attacks against Russia for the past 40 days in an attempt to defeat Russia, but this was "nothing more than a gamble." He claimed that the Ukrainian attacks had not brought about any substantial change in the situation. Putin also stated that in response to the Ukrainian attacks on civilian infrastructure in Russia, the Russian military had intensified its attacks on Ukrainian companies, and that the retaliatory strikes by Russia were "more destructive."Canadian Prime Minister Carney: The government is prepared to provide financial support to affected industries under the new 50% tariff.Canadian Prime Minister Carney: Canada will provide tariff protection for certain industries.Canadian Prime Minister Mark Carney: There is "no good news" about the future of the USMCA (United States-Mexico-Canada Agreement).

The USD/JPY Currency Pair Swings in a 60-Pip Range as Bulls Reclaim 124.00 on a Positive Note

Drake Hampton

Apr 08, 2022 10:07

Tips

  • The USD/JPY is up 1.26 percent this week.

  • The greenback strengthens as investors shrug off geopolitical concerns.

  • Forecast for the USD/JPY Exchange Rate: As bulls, we are leaning upward and are aiming for the YTD high of 125.10.

 

As the Asian Pacific session opens, USD/JPY pair extends its weekly gains on broad US dollar strength. The USD/JPY remains strong at 124.15, after trading in a tight 55-pip range over the last three days as the Eastern Europe conflict between Russia and Ukraine enters its sixth day.

 

Asian market futures continue to trade higher, despite the ongoing Russia-Ukraine confrontation. Contrary to the positive tone of Asian market futures, which point to a stronger open, US equities concluded the afternoon in a divided mood. Investors shrugged aside Russia-Ukraine tensions on Thursday, despite Russian Foreign Minister Sergei Lavrov's complaint that Ukraine's new draft accord submitted to Russia does not meet Russia's demands on Crimea and Donbas. Meanwhile, recent reports indicate that Russia is regrouping soldiers in preparation for another offensive aimed at reclaiming Ukraine's eastern territories, Donetsk and Luhansk.

 

The North American session on Thursday featured Fed speakers, lead by St. Louis Fed President James Bullard, who stated that the Fed is still behind the curve in its efforts to contain inflation. Bullard said that by the second half of the year, he would like to see the Federal Funds Rate (FFR) at 3.5 percent.

 

Later that day, Chicago Fed President Charles Evans indicated that "we (the Fed) will reach neutral by the end of this year or early next."

 

On the Japanese docket, the Current Account for February and Consumer Confidence for March would be the headline economic data releases. On the US front, Wholesale Inventories for February will be released on a monthly basis. 

USD/JPY Forecast: Technical Analysis

The USD/JPY continues bullish, but the average daily range (ADR) has been 55 pips during the last three days. Daily moving averages (DMAs) below the spot price further reinforce the uptrend, and it's worth noting that the 100-DMA at 109.48 is on the verge of crossing over the 200-DMA at 109.60.

 

With that considered, the first resistance level for the USD/JPY would be 124.00. If the latter is breached, the March 29 daily high of 124.30 will be revealed, followed by the year-to-date high of 125.10.


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