Solid News

USDJPY Market Analysis

3/16/2023 11:14 AM

The USD/JPY pair shows a moderate decline, developing the downward momentum formed the day before, and the strengthening of the yen is not hindered by weak macroeconomic statistics from Japan.

Industrial Production in January showed a decline of 3.1% after -2.3% in the previous month, while analysts expected the dynamics to remain at the level of -2.3%. In monthly terms, the decline in the index accelerated from -4.6% to -5.3%, which also turned out to be worse than the analysts' neutral forecasts. At the same time, traders drew attention to the increase in the dynamics of Exports in February by 6.5% after rising by 3.5% in the previous month, while analysts had expected 7.1%. Imports for the same period increased by 8.3%, which, however, turned out to be significantly lower than the dynamics of the previous month at the level of 17.5%, and forecasts assumed an increase of 12.2%. On the back of a notable recovery in Exports, Japan managed to reduce its Trade Deficit in February from -3498.6 billion yen to -897.7 billion yen, which was better than market expectations at -1069.4 billion yen.

The day before, investors assessed the minutes of the meeting of the Bank of Japan, which left the interest rate at -0.10%, continuing the ultra-soft monetary policy. Regulator board members agreed that the national economy continues to recover, and predicted a slowdown in inflation in the second half of the next financial year. In the meantime, according to a survey by the Japan Economic Research Center (JERC), wages at companies will be adjusted upwards, averaging 2.85% in the new fiscal year, to a 25-year peak. However, experts agree that this will not be enough, as Bank of Japan officials have previously stressed that indexing to inflation, which hit a 41-year high of around 4.0%, is needed to keep interest rates low and continue a 200.0 billion dollar economic stimulus program.

On the D1 chart Bollinger Bands are reversing into the descending plane. The price range is expanding from below, but does not conform to the surge of the "bearish" activity yet. MACD is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic, having shown a rebound from its lows at the beginning of the week, still maintains an upward direction, signaling the possibility of a corrective growth of the instrument in the near future.

Resistance levels: 134.00, 134.54, 135.57, 136.50. | Support levels: 133.00, 132.00, 131.00, 130.00.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024