USD/JPY Dynamics: Balancing Bullish Trends and Geopolitical Influences in Market Analysis
During the early hours of the Asian session on Friday, the USD/JPY pair sustains its position above the 151.00 threshold. The pair is bolstered by the strengthening US dollar and rising US Treasury bond yields, trading around 151.35 with a marginal 0.01% decline for the day. Nonetheless, additional gains could prompt intervention from Japanese authorities.
This week, Fed Governor Raphael Bostic indicated that further rate hikes may not be necessary.
Contrastingly, Fed Chair Jerome Powell’s hawkish remarks on Thursday bolstered the US Dollar against its major counterparts. Chair Powell expressed uncertainty about whether current policies are stringent enough to reduce inflation to the 2% target over time, hinting at the possibility of further rate hikes if deemed necessary.
The US weekly Initial Jobless Claims for the week ending November 4 came in at 217K, slightly below the anticipated 218K. Continuing Claims climbed to 1.834M, the highest since mid-April, from a previous 1.812M.
Market focus is now shifting to the upcoming US consumer sentiment and inflation expectation data.
The preliminary University of Michigan consumer sentiment index for November is forecasted to rise to 63.7.
On the Japanese front, despite tightening policies by major central banks globally, the Bank of Japan (BoJ) remains dovish. BoJ Governor Kazuo Ueda, on Thursday, stated that the bank would cautiously exit its ultra-loose monetary policy to prevent significant market volatility. He noted progress towards the central bank’s 2% inflation target, with rising wages and domestic demand-driven inflation gaining momentum.
Looking forward, investors are anticipating the Fed’s Logan speech for new directions. Any hawkish statements could further propel the USD, providing momentum to the USD/JPY pair. Additionally, the release of the preliminary Michigan Consumer Sentiment Index for November and the UoM 5-year Consumer Inflation Expectation will be closely watched for trading cues around the USD/JPY pair.
USD/JPY Technical Outlook
The USD/JPY pair is ascending, having breached the 151.00 barrier, aiming for the primary target at 151.70. This movement supports the continuation of the bullish trend in the short term. Surpassing the aforementioned level could extend the bullish trajectory towards 152.50.
Maintaining levels above 150.50 is crucial for realizing these targets, as a break below it could introduce bearish correctional pressure in the intraday trend.
USD/JPY Live Chart
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals