USD/JPY continued to hover near recent highs. BOJ Governor Ueda reiterated that BOJ will raise policy rate if economic conditions continue to improve this year. Pair was last seen trading at 157.63, OCBC’s FX analysts Frances Cheung and Christopher Wong note.
USD/JPY may face intermittent upward pressure
“He added that timing of rate adjustments will depend on the economy, inflation and financial conditions. He also highlighted that the momentum for wage hike is a key point when considering rate hikes. He has been putting a lot of focus on wages but avoided to hint at timing and pace of rate cut.”
“Chance of hike at the next MPC (24 Jan) is probably still live. But for now, the reluctance of BOJ and the guidance for Fed pause suggests that USD/JPY may continue to face intermittent upward pressure.”
“Bullish momentum on daily chart has faded but dip in RSI also moderated. Pair may consolidation for now until a new catalyst (or hint) comes along. Resistance at 158, 158.90 levels. Support at 156.67 (76.4% fibo retracement of Jul high to Sep low), 155.70 (21 DMA).”
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USD/JPY continued to hover near recent highs. BOJ Governor Ueda reiterated that BOJ will raise policy rate if economic conditions continue to improve this year. Pair was last seen trading at 157.63, OCBC’s FX analysts Frances Cheung and Christopher Wong note.
USD/JPY may face intermittent upward pressure
“He added that timing of rate adjustments will depend on the economy, inflation and financial conditions. He also highlighted that the momentum for wage hike is a key point when considering rate hikes. He has been putting a lot of focus on wages but avoided to hint at timing and pace of rate cut.”
“Chance of hike at the next MPC (24 Jan) is probably still live. But for now, the reluctance of BOJ and the guidance for Fed pause suggests that USD/JPY may continue to face intermittent upward pressure.”
“Bullish momentum on daily chart has faded but dip in RSI also moderated. Pair may consolidation for now until a new catalyst (or hint) comes along. Resistance at 158, 158.90 levels. Support at 156.67 (76.4% fibo retracement of Jul high to Sep low), 155.70 (21 DMA).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
