Will USDJPY continue its decline amid hawkish tones from BoJ?
Macro:
- The yen reached a multi-week high due to more hawkish expectations from the BoJ. Japan's December real Wage rose in the second month, driven by winter bonuses.
- The Japan Service PMI was revised to 53. In addition, the BoJ signalled that it would be willing to raise interest rates when conditions met.
Technical:
- USDJPY dropped below both EMAs after breaking the ascending trendline, indicating strong bearish momentum.
- If USDJPY continues to decline, the price may retest the support at 152.00.
- Meanwhile, USDJPY may correct to retest its EMA21 area before resuming its downward movement.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The yen reached a multi-week high due to more hawkish expectations from the BoJ. Japan's December real Wage rose in the second month, driven by winter bonuses.
- The Japan Service PMI was revised to 53. In addition, the BoJ signalled that it would be willing to raise interest rates when conditions met.
Technical:
- USDJPY dropped below both EMAs after breaking the ascending trendline, indicating strong bearish momentum.
- If USDJPY continues to decline, the price may retest the support at 152.00.
- Meanwhile, USDJPY may correct to retest its EMA21 area before resuming its downward movement.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.