USDJPY needs to pay attention to the BOJ meeting on Thursday
The Bank of Japan will make a decision on interest rates this Thursday and the market currently expects the bank to leave interest rates unchanged.
At about 10:00 Hanoi time on October 31 (Thursday), the Bank of Japan will hold an interest rate decision. As fears of a recession in the US ease, the Bank of Japan may signal that its policy outlook will be less dovish.
Recent data shows that Japan's core inflation remains under upward pressure, but the Bank of Japan will likely continue its "wait-and-see" approach at this week's meeting. The market will closely monitor the quarterly outlook report, as well as changes in the Bank of Japan's assessment of risks to the US economy and the recent depreciation of the yen.
Technically, after being limited by the 0.618% Fibonacci retracement level,
USDJPY has dropped to get more support from the upper edge of the price channel. Along with that, maintaining price activity above the 0.618% Fibonacci level will be a positive signal for the uptrend in the near future.
Currently, USD/JPY is likely to test the 154.525 level in the short term, more so than the 155.222 level with an upward trend from the near-term price channel.
However, the room for USD/JPY's price increase is no longer too wide as the Relative Strength Index (RSI) is reaching the overbought level, signaling corrections to occur. But as long as USD/JPY remains in the price channel, it still has an uptrend in the short term, and as long as it stays in the price channel and maintains price activity above EMA21, it still has an uptrend in the medium to long term. The current price drops should be considered a short-term correction without changing the main trend.
In the immediate future, the uptrend of USD/JPY will be noticed by the following technical points.
Support: 153.365 – 151.866
Resistance: 154.525 – 155.222
At about 10:00 Hanoi time on October 31 (Thursday), the Bank of Japan will hold an interest rate decision. As fears of a recession in the US ease, the Bank of Japan may signal that its policy outlook will be less dovish.
Recent data shows that Japan's core inflation remains under upward pressure, but the Bank of Japan will likely continue its "wait-and-see" approach at this week's meeting. The market will closely monitor the quarterly outlook report, as well as changes in the Bank of Japan's assessment of risks to the US economy and the recent depreciation of the yen.
Technically, after being limited by the 0.618% Fibonacci retracement level,
USDJPY has dropped to get more support from the upper edge of the price channel. Along with that, maintaining price activity above the 0.618% Fibonacci level will be a positive signal for the uptrend in the near future.Currently, USD/JPY is likely to test the 154.525 level in the short term, more so than the 155.222 level with an upward trend from the near-term price channel.
However, the room for USD/JPY's price increase is no longer too wide as the Relative Strength Index (RSI) is reaching the overbought level, signaling corrections to occur. But as long as USD/JPY remains in the price channel, it still has an uptrend in the short term, and as long as it stays in the price channel and maintains price activity above EMA21, it still has an uptrend in the medium to long term. The current price drops should be considered a short-term correction without changing the main trend.
In the immediate future, the uptrend of USD/JPY will be noticed by the following technical points.
Support: 153.365 – 151.866
Resistance: 154.525 – 155.222
Note
USD/JPY appears to have found balance at the 153 mark. Yesterday, it hit a high of 153.88 during the Asian session and fell to 152.41 after entering New York trading
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