The JPY has turned out to be the weakest currency this month, with USD/JPY increasing around 10 cents from around 1.15 to 1.25. The FED and other central banks have turned bullish, tightening the monetary policy and are accelerating it as inflation keeps surging, while the Bank of Japan is way behind. So, the JPY has been declining against all major currencies.

But, in the last two days, we have seen a reversal down, which was due after such a major surge to the upside. Although, the retreat has stopped at the 50 SMA (yellow) on the H4 chart, which is acting as support, so we decided to open a buy forex signal just above this moving average, targeting 123.30, with a stop loss below 120.

USD/JPY Daily Chart – The 50 SMA Holds As Suport

The retreat is complete on the H4 chart

US Q4 Final GDP Report

• Q4 final GDP 6.9% vs 7.1% expected
• The last reading was 7.0%
• Prices final 6.4% vs 6.3% prior
• GDP deflator final 7.1% vs 7.2% prior

This report is ancient history now and not a market mover. While it’s a slight miss, it’s a reminder that growth was sizzling coming into the year.

ADP US March Employment Report

• ADP US March employment +455K vs +450K exp
• Prior was +475K (revised to +486K)
• Goods producing businesses +79K vs +57K prior
• Services businesses +377K vs +417K prior
• Small business businesses +90K vs -96K prior
• Medium businesses +188K vs +18K prior
• Large businesses +177K vs +552K prior
• Full report

This is a solid report and highlights the positive run of jobs growth.

USD/JPY Live Chart