- summary:
- BOJ and Federal Reserve are expected to make conflicting interest rate decisions in the coming weeks, but there is more about USDJPY
Usdjby was in the New York trading session on Wednesday, with a commercial tariff morale in the focus center. The currency pair was 150.60 and raised by 0.4 % at the time of writing this report. This gain raised revenues in the last five sessions to 1.35 %, confirming the return of the strong dollar. However, there is a basic declining momentum as the Bank of Japan indicates a possible rise in the interest rate in the second quarter of the year.
Boj Kazuo Ueda said on Wednesday that the increasing wages are likely to continue inflation on the climb path, which requires the interest rate to be raised. However, it did not give a specific time schedule for a possible rise, which limits the negative side of the USDJPY in the short term.
On the other hand, the Federal Reserve appears more confident than price discounts this year. This seems more likely, even though President Donald Trump is open to negotiations on mutual commercial definitions. Low definitions may lead to low inflation rates, creating a strong condition for interest rate discounts.
On the contrary, the paralysis stretching in the trade negotiations between the United States and its prominent trading partners can maintain the high inflation, adding the payment to the USDJPY pair. Personal spending numbers will be displayed on Friday, and will provide evidence of the inflation path and assistance in assessing the possibility of reducing the interest rate in the second quarter.
Usdjpy prediction
Usdjpy axis in 150.21 and working above this level indicates control by buyers. The currency pair is likely to fulfill its first resistance at 150.80, but the strongest higher momentum will show that the obstacle and the following resistance test at 151.24.
On the other hand, the momentum will go towards the negative side if the husband is broken to less than 150.21. This first support will be witnessed in 149.83. The bullish narration will be invalid if the procedure ends down this level. In addition, the resulting momentum can extend the decrease of the 149.50 test.
