- summary:
- Usdjpy stares at an extended decrease as the American economy prints in successive weak data amid complications of collective tariffs.
Usdjby extended the declining trend on Monday, decreasing by 0.5 % and trading in 147.19. The currency pair gained 1.5 % last month amid the possibility of the interest rate of the Bank of Japan and the depth of the clip by the Federal Reserve.
The commercial tariffs put the Federal Reserve at a crossroads
The US dollar is under pressure as investors are concerned about the impact of the trade tariff war on the American economy. Moreover, the economy recently printed soft economic data, as the last Miss was by NGP and NFP and an increase in the unemployment rate in February.
BOJ is expected to raise interest rates in the coming weeks, as the inflation path in Japan is still stable. The country’s trade union project increases for wages and salaries between 6-7.2 % by August, after a decrease of 1.8 % in January-the first decrease in three months. High profits are likely to increase inflation, and thus require high interest rates.
Meanwhile, the Federal Reserve Stare in a accurate balancing law between containing the effect of inflation driven by the customs tariff and creating a favorable environment for more functions. The unemployment rate increased by 0.1 % to 4.1 % in February, with anticipated analysts that expected the rate to remain unchanged from January.
In addition, NFP numbers came out at 151 km, less than 159K, noting a basic weakness in the American economy. Japan’s gross domestic product data will be exit later on Monday, and a new driving force may add to the USDJPY trading pair.
Usdjpy prediction
Usdjby axis at 147.70 and momentum signs controlled by sellers. The husband is likely to decrease to find the first support in 147.00. However, the strongest momentum will be broken without this level and can test the second support at 146.70.
On the other hand, a fracture above 147.45 will turn the momentum into the upper direction. You can see the first resistance comes in 147.05. An extended control component by buyers will violate this level, which nullifies the negative narration and is likely to test the second resistance at 148.45.
