- summary:
- Usdjby pair is located at a turning point with two main decisions in the interest rate by BOJ and federal reserve addresses in the next step.
The US dollar won the Japanese yen in the fourth consecutive session on Wednesday, with the latest gains led by interest rate decisions from the Bank of Japan (BOJ) and the Federal Reserve. The USDJPY currency pair was traded at 149.95, by 0.4 % a day. Its gains in the last five sessions have brought to 1.1 %, with the relative safe haven for the dollar that it gives some edge.
The members of the BOJ Monetary Policy Committee voted to keep interest rates by 0.5 %, which led to high prices of high prices in the wake of a series of optimistic Japanese economic data. Moreover, the country’s trade unions have recently negotiated the high wages and salaries that were expected to pay BOJ to raise interest rates.
However, a decision on Tuesday is seen as a precaution by the Central Bank to ensure that the country does not slip into the shrinkage pressure seen in 2024. The result is to increase pressure on USDJPY before the interest rate decision at the Federal Reserve Bank later on Wednesday.
Analysts expect the rates to remain unchanged, but there is a reduction that will not be a complete surprise given the economic problems resulting from the ongoing commercial tariff war. In addition, the relative safe haven of the dollar is strengthened compared to the yen by an increase in the war in the Middle East.
Usdjpy prediction
Usdjpy axis in 149.70 and momentum prefer the upward trend to reach. The currency pair is likely to fulfill the initial resistance at 150.20. However, the expanded control by buyers will show this barrier and may test the next obstacle at 150.60.
Instead, the procedure can go to the negative side if the husband is broken less than 149.70. With sellers’ control, the first support is likely to be created in 149.22. The bullish narration will be invalid if the husband breaks less than this level. In addition, the resulting momentum can lead to more losses for the second support test at 148.83.
