KVB Market Analysis 30/4/2024
The USD/JPY pair rose following the release of the March core Personal Consumption Expenditures Price Index (PCE), indicating higher inflation. However, after reaching $160, there was a sharp sell-off down to 155 before rebounding to 156. We anticipate a move back to 158 followed by a potential drop to previous support levels.
Factors to consider:
1. US Monetary Policy: Rising interest rates by the Federal Reserve strengthen the USD against the Yen.
2. Bank of Japan Intervention: The Bank of Japan may intervene to weaken the Yen if it appreciates too much.
3. Japan's Economic Health: A stronger Japanese economy could lead to a Yen appreciation.
Technical Analysis:
The Relative Strength Index (RSI) indicates the market is overbought, triggering aggressive selling. Look for support around 157.00, a crucial level where the ascending channel's resistance breaks. A strong break below this level could favor sellers and lead to a significant price drop.
Syera Sidin
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