- summary:
- Usdjpy found the back wind after the result of wage negotiations in Japan, amid emissions of US Treasury Revenue.
The US dollar gained land against the Japanese yen on Friday, when wage dynamics in Japan were weight. Usdjby was traded at 148.30 at the time of this report, by 0.3 % on the daily chart, ensuring the continued pattern of the weekly gains between the yen and the dollar.
Japan’s labor union managed to agree 5.46 % in workers’ salaries, and they are 6 % less than expected. This is what reduced the possibility of Japan Bank (BOJ) raising interest rates when it takes its decision next Tuesday. This will reduce the bullish yen against Greenback.
Meanwhile, the dollar is supported by a strong offer from the American labor market. The country’s initial unemployment claims are printed in 220 km. This was less than the expected number of 226 thousand, providing some numbers after the non -farm salary numbers issued last week.
Also, the return on US Treasury bonds is copied for 10 years until this writing, as it got 2.3 basis points to stand by 4.299 %. This gap is likely to expand against Japanese government bonds, which was recently raised. This puts a USDJPY pair for a possible continuation of the upsurgeeur path to the weekend.
Usdjpy prediction
The USDJPY axle mark is in 148.05 and working above this level indicates control by buyers. The immediate resistance is likely to be in 149.00. However, the extended bullish momentum will show this barrier and may lead to more gains to test the second resistance at 149.72.
On the negative side, USDJPY may find the first support at 147.49 if it collapses without the axis mark. With the sellers’ control, strong momentum can be broken down the first support and nullifies the bullish direction. Also, this momentum may lead to an additional decrease, as the currency pair is likely to test the second support at 146.90.
