• Home
  • Privacy Policy
  • Contact
EURO Finance Hub
  • Bitcoin
  • Cryptocurrency
  • Forex Broker
  • Forex Trading
  • Investing
  • Mica crypto
No Result
View All Result
EURO Finance Hub
No Result
View All Result
Home Forex Trading

Japanese Yen Holds Ground Against US Dollar as Fed Forum Nears. Where to for USD/JPY?

August 24, 2022
in Forex Trading
Japanese Yen Holds Ground Against US Dollar as Fed Forum Nears. Where to for USD/JPY?

Japanese Yen, USD/JPY, US Dollar, DXY, Fed, Jackson Hole, Yields – Talking Points

  • USD/JPY is exhibiting a relationship with Treasury yields
  • Overall US Dollar moves are also beholden to US interest rates
  • All eyes are on Jackson Hole this week. Will the Fed summit move USD/JPY?

The Japanese Yen remains vulnerable to external factors as it resumed weakening against the US Dollar last week. The broader strengthening of the ‘big dollar’ can be seen through the DXY index.

The DXY index is a US Dollar index that is weighted against EUR (57.6%), JPY (13.6%), GBP (11.9%), CAD (9.1%), SEK (4.2%) and CHF (3.6%).

IF we look at USD/JPY against the DXY index and the 10-year Treasury note yield, the correlation becomes fairly apparent.

USDJPY DXY 10YEAR CHART

Chart created in TradingView

Understanding where the 10-year Treasury yield is headed may provide an edge for trading USD/JPY.

The upcoming annual Jackson Hole symposium could set the stage for an opportunity with a keynote address from Federal Reserve Chair Jerome Powell on Friday.

Previous gatherings of central bankers in the ski resort have occasionally revealed significant policy shifts. This time last year the Fed labelled accelerating inflation as transitory. This year, the alarms bells are ringing on eye wateringly high inflation becoming entrenched.

The language will be closely watched for clues on how determined the central bank is to get inflation back toward their goal of around 2%.

Overnight Federal Reserve Bank of Minneapolis President Neel Kashkari renewed his hawkish credentials referring to his concern of the ‘unanchoring of inflation expectations’.

This led to some speculation of a 100 basis-point (bp) hike at their September Federal Open Market Committee (FOMC) meeting. Market pricing is swaying between a 50- or 75-bp rise in the target rate.

The consensus appears to be that Fed Chair Powell will be more moderate in his language. A deviation from this rhetoric could see Treasury yields move significantly, leading to potentially outsized USD/JPY moves.

USD/JPY TECHNICAL ANALYSIS

As identified on Monday in USD/JPY price action, 137.46 is the 78.6% Fibonacci Retracement of the move from 139.39 to 130.39. The price has failed to hold above that level and it may continue to offer resistance.

Nearby support could be at the break point of 135.57. The 34- and 55-day Simple Moving Averages (SMA)are also near that level and might support it.

USDJPY CHART

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

Source link

ShareTweetPin
Previous Post

Data Brief: German Consumers See Banks as Super Apps

Next Post

Pleb Miner Month Celebrates Home Bitcoin Miners – Bitcoin Magazine

Next Post
Pleb Miner Month Celebrates Home Bitcoin Miners – Bitcoin Magazine

Pleb Miner Month Celebrates Home Bitcoin Miners - Bitcoin Magazine

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent News

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

February 2, 2023
2 Beaten-Down Tech Stocks to Buy in 2023

3 Dividend Aristocrats to Buy Now

February 2, 2023
Financial Accounting Standards Board votes to release draft cryptocurrency in March

Financial Accounting Standards Board votes to release draft cryptocurrency in March

February 2, 2023
Ethereum Looks Better Than Bitcoin Here (ETH-USD)

Ethereum Looks Better Than Bitcoin Here (ETH-USD)

February 2, 2023

Random Updates

Marks Art Gallery

The next ‘Banksy’ on the Horizon Marks Art Kensington DWizz

by Miller
January 28, 2023
0

Marks Art Kensington - DWizz is an up-and-coming street artist whose real identity is yet to still remain anonymous. Unlike...

Crypto Reg Weekly: MiCA Hits Stablecoins

EU Crypto Regulation May Need Clarification

by Miller
March 8, 2022
0

The European Parliament’s Monetary Committee will soon vote on a directive, Markets in Crypto Assets (MiCA), that will regulate crypto...

Sections

  • Bitcoin
  • Cryptocurrency
  • Forex Broker
  • Forex Trading
  • Investing
  • Mica crypto

Follow Us

Recent News

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

February 2, 2023
2 Beaten-Down Tech Stocks to Buy in 2023

3 Dividend Aristocrats to Buy Now

February 2, 2023
Financial Accounting Standards Board votes to release draft cryptocurrency in March

Financial Accounting Standards Board votes to release draft cryptocurrency in March

February 2, 2023
  • Contact
  • Home
  • Privacy Policy

© 2022 Euro Finance Hub

No Result
View All Result
  • Bitcoin
  • Cryptocurrency
  • Forex Broker
  • Forex Trading
  • Investing
  • Mica crypto

© 2022 Euro Finance Hub