Market Overview

USD/JPY Forecast: Bearish As Long As Below 109.30

Share:
USD/JPY Forecast: Bearish As Long As Below 109.30

USD/JPY Current Price: 108.72

  • The US Federal Reserve is expected to keep rates on hold, and its optimism about the economy.
  • The market mood improved just modestly during US trading hours, underpinning the pair.
  • USD/JPY holding within familiar levels, bearish as long as below 109.30.

The USD/JPY pair is trading in the 108.70 price zone, marginally higher for the day. As it happened with most of its major rivals, trading was choppy amid a scarce macroeconomic calendar combined with first-tier events scheduled for the next few days, starting this Thursday with the Fed’s monetary policy decision. The US Central Bank is expected to keep rates on hold while Chief Powell will likely repeat his confident stance on the health of the local economy.  

The pair advanced alongside equities, which shrug off the dismal mood during US trading hours, with Wall Street ending the day mixed. Japan didn’t release relevant macroeconomic data this Tuesday and will publish November PPI during the upcoming Asian session.

USD/JPY Short-Term Technical Outlook

The advance in the USD/JPY pair fell short of changing the dominant bearish tone, as it would need to move at least beyond 109.30 to start attracting speculative buying. In the 4-hour chart, the pair has settled above a mild-bearish 20 SMA but remains below the larger ones. Technical indicators in the mentioned time frame, continue lacking directional strength, stuck around their midlines. The risk of a bearish extension will increase on a break below 108.40.

Image Sourced from Pixabay

 

Related Articles

View Comments and Join the Discussion!

Posted-In: FXStreetNews Commodities Forex Global Economics Markets General