- summary:
- Usdjpy fourth daily loss in a row and things are about to become tougher for the dollar as China pumps pressure.
The Japanese yen continues to rise against the US dollar, as the US economic view remains unconfirmed. So far, the dollar’s ability has not been assisted to recover lost lands by reducing commercial tariff concerns. At the time of the press, the Usdjpy currency was 142.80, a decrease of 0.1 % at the time of writing this report. While China raises the risks, the American trade war against China appears to be transformed against the world’s largest economy.
In the latest developments, China prevented airlines from buying Boeing aircraft or aircraft spare parts, adding the declining pressure on the US dollar. Three days ago, the US President announced 145 % comment against smartphones and electronics from China, and the Chinese government’s decision adds Boeing to uncertainty about the strength of the green back.
Regardless of the yen, other major currencies are heading up against the dollar. The DXY index, which weighs the power of the dollar against six main currencies, is still nearly six months of its lowest level. At the time of writing this report, the index was at 99.83, and in the session for the third consecutive session below the 100 threshold. Watching with analysts’ expectations, the Bank of Japan is likely to raise interest rates on April 30.
The Federal Reserve, on the other hand, is expected to reduce interest rates at its meeting in May. Although the central bank is independent, US President Donald Trump prompted him to reduce borrowing costs to reduce the pressure of customs tariffs on the American economy. This scenario prepares a USDJPY trading pair for a declining direction extending in the coming weeks.
Usdjpy prediction
The USDJPY trading pair will now prevail in 143.66 and the downside will prevail if the resistance prevails at this level. The declining momentum is likely to find its initial support at 142.10. If the sellers extend their control, the husband may decrease and test the second support in 141.00.
On the other hand, a fracture above 143.66 will turn the momentum in favor of buyers. In this case, the initial resistance is likely to be at 144.57. Because of this mark will nullify the narrative of the negative side. Also, the resulting momentum can extend the gains to take action to the second resistance level at 145.45.
