The USDJPY rose last Tuesday. Above 38.2% retracement
The Ueda Empire began in the BOJ
BOJ
The Bank of Japan (BOJ) is Japan’s central bank. It was founded in 1882 and is headquartered in Tokyo. The main responsibilities of the BOJ are issuing and managing the country’s currency, implementing monetary policy, and ensuring the stability of the financial system. It is a lender to banks during financial crisis. The BOJ sets the country’s interest rate and sets an inflation target, aiming to achieve 2% inflation. The BoO has a long history, including
The Bank of Japan (BOJ) is Japan’s central bank. It was founded in 1882 and is headquartered in Tokyo. The main responsibilities of the BOJ are issuing and managing the country’s currency, implementing monetary policy, and ensuring the stability of the financial system. It is a lender to banks during financial crisis. The BOJ sets the country’s interest rate and sets an inflation target, aiming to achieve 2% inflation. The BoO has a long history, including
Read this Season, and the first impressions are mixed. In the short term, the status quo continues, resulting in a slightly bearish JPY (and higher USDJPY
USD/JPY
USD/JPY is the currency pair that encompasses the United States dollar (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The number of pairs shows how many Japanese yen are needed to buy one US dollar. For example, the USD/JPY is trading at 100.00, which means that 1 US dollar is equal to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, while the Japanese yen is the world’s third most traded currency.
USD/JPY is the currency pair that encompasses the United States dollar (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The number of pairs shows how many Japanese yen are needed to buy one US dollar. For example, the USD/JPY is trading at 100.00, which means that 1 US dollar is equal to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, while the Japanese yen is the world’s third most traded currency.
Read this Season). Meanwhile, the US dollar is strengthening in early US trading as markets react to Friday’s jobs report. Expectations for a 25 basis point hike at the May meeting rose to 70%. U.S. stocks are now falling, as yields fell today, with two-year declines down three basis points but rebounding from Friday’s close. .
Technically, the USDJPY has already declined in the first hour of trading, testing the 100-hour moving average (blue line now at 131.778) with a low of 131.823 (it started the day at 131.802). Then the buyers enter the price up. The first rise during the Asian session occurred at the 38.2% Fibonacci retracement level of the decline from the March high to the March low (at 132.793). While the move down has recouped the day’s gains, sellers have held back, driving the price higher in the last four hours. This moved the price above the 38.2% retracement to a high of 133.169, with last Tuesday’s high at 133.161. The current trading price is 133.045.
What’s next?
The 38.2% retracement level is a critical short-term level for intraday traders. When the price first reached that level and then broke higher, it became important from a short-term technical perspective. It is important to note that the current highs can generate profit, but the most important technical level for traders to break is the collapse of the 100-day moving average at 133.476.
Last week, the price reached the 50% Fibonacci retracement level of the March trading session at 133.769 but remained well below the falling 100-day moving average (upper blue line on the chart at above). The last time the stock traded above the 100-day moving average was on March 10. A move above this level would point to a 50% retracement at 133.769. Overall, traders are trying to maintain their position above the 38.2% retracement level.