Fed and BOJ Shaping USDJPY Outlook Euro Strength Challenges Exporters
The USDJPY forex pair, representing the exchange rate between the US dollar and Japanese yen, continues to attract attention as traders monitor economic signals and central bank developments. Currently hovering near key psychological levels, USDJPY is influenced by today’s upcoming testimony from Fed Chair Powell, alongside the release of U.S. New Home Sales figures, expected to decline from 743K to 694K. Additionally, U.S. Crude Oil Inventories data, forecasted at -1.2M barrels following a sharp previous drawdown of -11.5M barrels, may further impact dollar sentiment. Meanwhile, traders will closely examine Japan’s BOJ Summary of Opinions and SPPI data, which held steady at 3.1% year-over-year, for clues about potential monetary policy adjustments, thus shaping near-term USDJPY price dynamics.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
On the USDJPY H4 chart technical analysis, the price has entered a consolidation phase, fluctuating within a significant Fibonacci retracement zone, particularly between the 0.236 level (143.644) and the 0.382 level (144.879), which currently serves as immediate support and resistance, respectively. Although the price recently retreated from the higher Fibonacci resistance around the 0.786 level (147.259), it is now trading near the mid-range of this critical retracement region at 144.922. Additionally, the RSI indicator at 42.52 suggests slightly bearish momentum but does not yet signal oversold conditions, highlighting ongoing indecision. The MACD histogram is negative and indicates a bearish crossover below the zero line, further reinforcing bearish sentiment. Traders should closely monitor price reactions near the Fibonacci boundaries, particularly the current support zone around 143.644 and resistance near 146.155 (the 0.618 retracement), to gauge potential breakout or reversal signals that will define the upcoming directional bias.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
