Fundamental Overview
The USD remained supported since last Thursday’s US NFP report as the data came out better than expected and triggered a hawkish repricing in interest rates expectations. Unfortunately for the greenback, that wasn’t enough as wage growth came out on the softer side which limited further repricing and more sustained gains.
On the JPY side, we got some disappointing wage growth figures yesterday and the US-Japan negotiations don’t look to be going well. As a reminder, the BoJ continues to place a great deal on the US-Japan trade deal before looking at adjusting rates. So, negative news on the trade front erodes the hopes for another rate hike by year-end.
USDJPY Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDJPY reached the top of the range around the 146.28 level. The buyers will likely continue to keep pushing into the 148.28 resistance where we can expect the sellers to step in with a defined risk above the resistance to position for another drop back into the 142.35 support.
USDJPY Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the range between the 142.35 support and the 146.28 resistance. The sellers will likely step in around these levels with a defined risk above the resistance to position for a drop back into the 144.35 zone. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 148.28 level next.
USDJPY Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor upward trendline defining the bullish momentum on this timeframe. The buyers will likely continue to lean on the trendline to keep pushing into new highs, while the sellers will want to see the price breaking below the trendline and the 144.35 zone to gain more conviction for further downside. The red lines define the average daily range for today.
Upcoming Catalysts
This week, the only notable events are the US tariff letters and trade deals expected to be fully rolled out by tomorrow, and the US Jobless Claims figures on Thursday.
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This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
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