Usdjpy stare on the negative side of the American economy tensions

summary:
• Usdjby is under pressure on the American economy amid increasing prospects that BOJ will raise interest rates soon.

Usdjby continued trading near a five -month loss on Friday after registering a third consecutive daily loss during the Asian session. The currency pair reached its lowest levels 147.38 and decreased by 0.3 % at the time of writing this report, which reaches its monthly losses to 4.3 %. The dollar is witnessing an extensive decrease across the broader market, with a DXY index at its lowest level for four months.

The most prominent of the week is the non -farm salary data in February, which is scheduled to be released on Friday. The weak labor market can add credibility to the fears that the American economy is staring at slowing, adding pressure to USDJPY.

Investors are concerned that the harsh global market conditions created by a high trade tariff environment can be inverse to the American economy. A return on US Treasury has been placed for 10 years less than 4.30 % in the past two weeks, indicating a decrease in confidence in the American economy path.

Meanwhile, the Bank of Japan (BOJ) is expected to maintain a sane position, with a possible interest rate increased in March. On the other hand, the Federal Reserve can be forced to swing to work and reduce interest rates in the second quarter of the year if the American economy continues to show signs of weakness. This scenario puts a USDJPY pair up to a medium -term decline.

Usdjpy prediction

The momentum on USDJPY calls for more negative side under the axis mark at 147.90. The currency pair is likely to find the first support at 147.43, but the expanded control of the sellers can lead to a further decrease in the 146.95 test.

Instead, the procedure will be swinging to the upper direction if the procedure exceeds 147.90. You can see the first resistance you faced in 148.40. The strongest upward momentum will break this barrier and nullify the negative narration. Moreover, extended control by buyers can lead to more gains and take measures to the second resistance level at 148.80.