USD/JPY Gains Support at 130.50 – Brace for a Buy Signal
Skerdian Meta•Wednesday, January 4, 2023•2 min read
According to the Nikkei Asian Review, PM Kishida stated in a previous interview that “the Japanese government must engage with the next Bank of Japan governor on whether to rewrite the joint agreement setting a 2% inflation target.” Nevertheless, the pair paid little attention to the Bank of Japan’s (BoJ) emergency bond-buying operation, carried out for the fourth consecutive session on Wednesday to defend the yield goal. The decline in the US dollar, combined with a new decrease in Treasury bond yields, is putting downward pressure on the USD/JPY pair.
The US dollar’s recovery has stalled amid an upbeat market environment as traders prepare for new market activity ahead of the US ISM Manufacturing PMI and Fed Minutes, which are coming later this Wednesday.
On the lower side, USD/JPY is expected to target 128.90, accompanied by 127.85 levels. The EMA50 supports the projected decrease, which will continue to be valid unless the price breaks and holds above 130.55 since breaking this level may initially force the price to test 132.35 regions before any new negative effort. Today’s trading range is likely between 128.60 support and 130.50 resistance.
Today’s projected trend: bullish above 130.50