- summary:
- Usdjby has decreased for the second session in a row, although the federal reserve retains fixed interest rates.
The US dollar lost more reasons against the Japanese yen in the European trading session on Thursday, with investors not postponing the interest rate of the Federal Reserve on Wednesday. Usdjby pair was traded at 154.55 writing time, a 0.4 % decrease for the second day’s registration.
The Federal Reserve kept borrowing costs in the range of 4.25 % -4.50 % on Wednesday, noting that the reduction of prices will only come if there is sufficient evidence to prove that the inflation rate has been contained. On the other hand, analysts are betting that the Bank of Japan will raise interest rates several times this year, probably after wage negotiations in the spring.
Ultimately, the next reduction in the Federal Reserve depends on whether the inflation rate has returned to a 2 % target. Personal consumption expenses (PCE) for January will be on Friday, and will make hints on the inflation path. Analysts give up that President Donald Trump’s tariff plans will make it difficult to contain inflation, as imports may become more expensive.
Three high -influential data sets will appear later in the day, under the title of GDP Q4 2024 US. Also, the preliminary demands numbers last week and the consumer price index in Japan (CPI) will pump new fluctuations into the USDJPY currency trade.
USDJPY expectations
The momentum controls USDJPY signals by sellers and calls for more negative side. The currency pair is likely to find in 154.74 and the first support momentum in 154.32. However, an extended control element by sellers will be broken without this level and may test 154.00.
On the contrary, the momentum will turn into the upper direction if the pair is broken over the axial sign. If this happens, it is likely to be the next destination at 155.04. The breach of that mark will nullify the negative narration and may extend to the next barrier at 155.41.
