USDJPY recovers, although USD loses support from interest ratesAccording to CME Group's FedWatch Tool, traders now see a 62.2% chance of the Fed cutting interest rates by 50 basis points at its November 7 meeting, up from 37% a week ago, and a 37.8% chance of a cut. reduce interest rates by 25 basis points. In the future, if the market continues to maintain high probability expectations about the level of interest rate cuts of the US Dollar, the US Dollar will still be under pressure.
This trading day is an important trading day when many key Fed officials speak with US Federal Reserve Chairman Jerome Powell. The content of these statements will affect the Dollar and the exchange rate. The probability of a Fed interest rate cut will then fundamentally affect USD/JPY.
Looking at the daily chart, USDJPY is still on the recovery path and is achieving certain bullish conditions by breaking above the trend price channel and breaking above the 21-day moving average (EMA21).
On the other hand, if USD/JPY continues to maintain price activity above the 0.236% Fibonacci retracement level it will tend to continue to increase further towards the next Fibonacci level at 0.382% price point of 148.113.
In addition, the Relative Strength Index rising above the 50 level also shows that there is still quite wide room for price increases ahead towards the 80 level.
OANDA:USDJPY also forms a short-term trend price channel that is noticed by the price channel, and the short-term trend is leaning towards the bullish trend, and notable technical levels will be listed below.
Support: 142,941 – 141,531
Resistance: 148.113