Solid News

USDJPY Under Pressure at the Beginning of a New Trading Week

1/9/2023 11:01 AM

The USD/JPY pair shows mixed dynamics in Asian trading, consolidating near 131.70. The US currency remains under pressure after a noticeable decline last Friday, when the instrument retreated from its local highs from December 20. The reason for the strengthening of the negative dynamics was macroeconomic statistics, which strengthened the investors' belief that the US Federal Reserve could ease monetary policy in the near future. However, so far the regulator unequivocally declares at least the preservation of the current "hawkish" rate, not excluding an increase in interest rates in the range of 25 to 50 basis points at the beginning of the year.

In turn, the market expects that closer to the spring of 2023 the Bank of Japan may announce new measures to tighten monetary policy, up to an increase in the interest rate, which has been in the negative zone for a long time. Prime Minister Fumio Kishida, following Japan's Rengo Trade Union Confederation, at a meeting of the country's three largest business lobbies called on companies to raise wages for workers. The official explained that the national economy has high prospects for going into stagflation if wages do not match current inflation rates. In turn, the government intends to allocate about 1.0 trillion yen for the retraining of specialists, as well as to encourage employers who refuse to pay one-time bonuses instead of raising a fixed salary.

The macroeconomic statistics released in Japan on Friday had a slight pressure on the positions of the yen. Jibun Bank Manufacturing PMI fell from 51.7 points to 51.1 points in December with a neutral outlook, and the November Labor Cash Earnings slowed down from 1.4% to 0.5% in annual terms, while analysts expected the dynamics to accelerate up to 1.5%.

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range has consolidated, reflecting the ambiguous nature of trading in the short/middle term. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic, without reaching the level of "80", reversed into a descending plane, reacting to the appearance of a rapid "bearish" dynamics at the end of last week.

Resistance levels: 132.00, 133.00, 133.61, 134.50. | Support levels: 131.00, 130.00, 129.00, 128.00.

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