USDJPY rose to its highest level last Tuesday
Ueda system started in Bank of Japan
Bank of Japan
The Bank of Japan (BOJ) is Japan’s central bank. Founded in 1882 and headquartered in Tokyo, the main responsibilities of the Bank of Japan include issuing and managing the country’s currency, implementing monetary policy and ensuring the stability of the financial system. It also acts as a lender of last resort to banks in times of financial crisis. The Bank of Japan sets the interest rate for the country and sets an inflation target with the aim of achieving 2% inflation.
The Bank of Japan (BOJ) is Japan’s central bank. Founded in 1882 and headquartered in Tokyo, the main responsibilities of the Bank of Japan include issuing and managing the country’s currency, implementing monetary policy and ensuring the stability of the financial system. It also acts as a lender of last resort to banks in times of financial crisis. The Bank of Japan sets the interest rate for the country and sets an inflation target with the aim of achieving 2% inflation.
Read this termInitial comments were mixed. In the short term, the status quo persists, resulting in a slight drop in the Japanese yen (and a rise in JPY). US dollar / Japanese yen
US dollar / Japanese yen
The USD/JPY currency pair is the currency pair that includes the United States dollar (symbol $, symbol USD), and Japan’s Japanese yen (symbol ¥, symbol JPY). The price of the pair indicates how many Japanese yen are needed to buy 1 US dollar. For example, when the USD/JPY pair is trading at 100.00, this means that 1 US dollar is equivalent to 100 JPY. The US dollar (USD) is the most traded currency in the world, while the Japanese yen is the third most traded currency in the world, resulting in
The USD/JPY currency pair is the currency pair that includes the United States dollar (symbol $, symbol USD), and Japan’s Japanese yen (symbol ¥, symbol JPY). The price of the pair indicates how many Japanese yen are needed to buy 1 US dollar. For example, when the USD/JPY pair is trading at 100.00, this means that 1 US dollar is equivalent to 100 JPY. The US dollar (USD) is the most traded currency in the world, while the Japanese yen is the third most traded currency in the world, resulting in
Read this term). Meanwhile, the US dollar is rising in early US trade as markets react to Friday’s employment report. Expectations for a 25 basis point hike at the May meeting rose to 70%. US stocks are currently lower, while yields are lower today, with the two-year yield down by three basis points but recovering from Thursday’s close.
Technically, USDJPY initially fell during the first hour of trading, testing the 100-hour moving average (blue line currently at 131.778) with a low at 131.823 (day started at 131.802). Then buyers stepped in, pushing the price higher. The initial uptrend during the Asian trading session was halted at the 38.2% Fibonacci retracement level of the decline from the March high to the March low (at 132,793). Although the subsequent bearish move has fully reclaimed the day’s gains, buyers have reappeared, pushing the price higher for the past four hours or so. This pushed the price above the 38.2% retracement to a high of 133.169, with last Tuesday’s high at 133.161. The current trading price is 133.045.
What then?
The 38.2% retracement level acts as a critical short-term risk level for intraday buyers. Since the price initially stopped at this level and later broke higher, it has become more important from a short-term technical perspective. It should be noted that the recent highs may prompt some profit taking, but the most important technical level for buyers to break is the 100-day moving average at 133,476.
Last week, the price reached the 50% Fibonacci retracement level of the March trading range at 133,769 but remained well below the 100-day moving average (the higher blue line on the above chart). The last time the price traded above the 100-day moving average was on March 10th. A move above this level will target 50% correction at 133.769. In general, buyers are trying to maintain their positions above the 38.2% retracement.