USDJPY – Down
Events to watch out for today:
15:30 EET USD – Retail Sales m/m
USDJPY:
The Japanese yen (JPY) increased against the US dollar for a second consecutive day on Thursday, but lacked follow-through and remains close to the year-to-date low reached earlier this week. Japanese officials have cautioned against rapid and speculative movements in the currency market, leading to speculation of possible intervention to protect the local currency. This, in turn, is considered a significant factor providing some support to the yen. However, initial government data indicated that Japan’s economy contracted unexpectedly in the fourth quarter, confirming a technical recession and creating uncertainty regarding the Bank of Japan’s (BoJ) exit from its negative interest rate policy.
The Japanese Yen’s significant appreciation is being held back by signs of stability in stock markets. Meanwhile, the US Dollar (USD) may continue to receive support due to growing confidence that the Federal Reserve (Fed) will maintain higher interest rates. Better-than-expected US consumer inflation data released on Tuesday supported rates, adding to favourable data suggesting that the economy is in good shape. The hawkish perspective, on the other hand, supports dollar bulls and is expected to restrict the upside potential for the USD/JPY pair. Traders are currently monitoring the US economic agenda, specifically the monthly retail sales data, for short-term opportunities.
Trade Recommendation: Watch the level of 150.00, if it rebounds we start buying
We offer you to work with the most popular and proven trading terminals – MetaTrader 4, MetaTrader 5, as well as WEB-terminal MetaTrader 5.
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
