Tue, May 30, 2023 @ 05:23 GMT
HomeContributorsTechnical AnalysisUSD/JPY: No Significant Developments Expected

USD/JPY: No Significant Developments Expected

‘With attention on whether the Fed can conduct three hikes this year, Friday’s jobs data will provide important cues as to whether an inflation-inducing wage increase is taking place.’ – IG Securities (based on Reuters)

Pair’s Outlook

On Tuesday, the USD/JPY pair remained relatively unchanged again, unable to reclaim the 114.00 major level. Even if this mark is overcome, the Buck is still unlikely to appreciate beyond 114.50, as the ascending channel’s resistance line is located there, also bolstered by the 55-day SMA, the monthly R1 and the upper Bollinger band. Technical indicators are also in favour of the positive outcome, but today’s ADP Employment data could turn the tide for the US Dollar, causing it to fall to around 113.30. A flat outcome would also not be a surprise, as the main focus is still on Friday’s NFP data this week.

Traders’ Sentiment

Today 60% of all open positions are long, compared to 61% on Tuesday. At the same time, the number of orders to purchase the Greenback inched up from 54 to 57%.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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