EUR/USD 1.15641
0.188%
Gold 4173.77
-2.012%
Oil 88.506
1.322%
USD/JPY 160.397
0.021%
GBP/USD 1.34117
0.247%
GBP/JPY 215.125
0.270%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 10 – As expected, the Bank of Canada kept its benchmark interest rate unchanged at 2.25% today. In its statement, the Bank of Canada noted that economic activity remained weak after a surprise 0.1% annualized decline in GDP in the first quarter (the third contraction in the past four quarters). The Bank of Canada avoided using the term "recession." The bank expects GDP to return to growth in the second quarter, "but even with some rebound, the economy is expected to remain in a state of overcapacity." Economists said that overcapacity (or economic slack) should help curb inflationary pressures.June 10 – The Bank of Canada kept its main interest rate unchanged on Wednesday, in line with market expectations, and stated that there is currently no sufficient evidence that rising energy prices are driving broad-based inflation. Bank of Canada Governor Macklem reiterated that the bank would not hesitate to raise interest rates to control inflation if necessary. Wednesdays decision marks the fifth consecutive time the Bank of Canada has kept its main policy rate at 2.25%, as several factors have complicated the economic outlook. The war in Iran has caused gasoline prices to soar, putting pressure on household budgets, although Canada, as a net exporter of crude oil, has benefited from increased revenue. The central bank stated, "To date, there is no sufficient evidence that high energy prices have been widely passed on to other consumer prices. The Governing Council will continue to ignore the short-term effects of the war on overall inflation, but will not allow rising energy prices to develop into persistent inflation."US Senate Majority Leader Thune: Trumps nomination for Director of Intelligence will be a major decision.US Senate Republican Leader Thune: Most Republican senators want to complete the mission in Iran.The Bank of Canada will announce its interest rate decision in ten minutes.

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.


image.png 


Suggestion