USD/JPY Trend Today - Unfavorable for JPY🔔🔔🔔 USD/JPY news:
👉Private sector activity in Japan deteriorated in March, as the composite PMI dropped from a six-month high of 52.0 in February to 48.5, signaling a renewed decline in business activity. The services PMI fell to a three-year low of 49.5 from 53.7 in February, while the manufacturing PMI declined to a multi-year low of 48.5 from 52.0 in the previous month.
👉Meanwhile, Japan’s Finance Minister, Katsunobu Kato, warned that "Japan has not yet overcome deflation." He noted that rising prices were primarily driven by a weak yen and high commodity costs rather than a cycle of wage growth and consumer demand.
👉The Bank of Japan (BoJ) is unlikely to tighten its policy significantly beyond current levels, which poses a downside risk for the JPY. Swap markets continue to indicate a rate hike of less than 50 basis points over the next twelve months.
Personal analysis:
👉JPY is underperforming most major currencies, JPY is unlikely to gain traction over USD due to the impact of fundamental information. Therefore, in the short term, this pair will maintain its upward momentum
👉However, USD/JPY is approaching the strong resistance level of 151.00. Besides, RSI (1H) is entering the overbought zone, so there will be a technical pullback to create momentum for the main uptrend.
👉Analysis based on important resistance - support and Fibonacci levels combined with Pivot points and RSI to come up with a suitable strategy
Plan:
🔆 Price Zone Setup:
👉Sell USD/JPY news: 151.00 - 151.10
❌SL: 151.45 | ✅TP: 150.60 – 150.20
FM wishes you a successful trading day 💰💰💰
