Solid News

USDJPY Recovers after Last Week's Decline

12/12/2022 10:14 AM

The US dollar is trading with upward dynamics, testing the level of 137.00 for a breakout, and the "bulls" are waiting for new drivers of movement in the market.

Investors are focused on the November statistics on consumer inflation, which will be published on Tuesday, December 13, as well as the results of the two-day meeting of the US Federal Reserve, which will be released the next day. Analysts expect the annual dynamics of consumer prices to remain at the same level of 7.7%. In turn, the regulator is likely to raise the rate by only 50 basis points, thus changing the existing correction plan in increments of 75 basis points.

The yen is slightly supported by relatively positive macroeconomic statistics on producer inflation. Producer Price Index in November rose by 0.6% after rising by 0.8% in the previous month, while analysts had expected a slowdown in dynamics to 0.5%. The Domestic Corporate Price Index corrected from 9.4% to 9.3%, while the market expected a decline to 8.9%. At the same time, the BSI Large Manufacturing Conditions Index for the fourth quarter decreased by 3.6% after an increase of 1.7%, with a forecast of maintaining a minimum growth of 0.1%. Experts note the high potential for the recovery of the Japanese economy in the current quarter amid the easing of sanctions restrictions on the supply of semiconductors and cars, as well as the abolition of border controls due to COVID-19, which, in turn, will increase tourist flows both from abroad and inside the country. This will boost private consumption, helping the economy return to growth in October-December.

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic, having approached the level of "80", reversed into a horizontal plane, reflecting the multidirectional dynamics of trading in recent days.

Resistance levels: 137.50, 138.50, 139.58, 140.79. | Support levels: 136.50, 135.57, 134.78, 133.61.

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