Home Forex EURJPY ahead of Kazuo Ueda’s testimony

EURJPY ahead of Kazuo Ueda’s testimony

by SuperiorInvest
EURJPY, daily.

After the Emperor’s birthday passed, Yen had limited movement. On Tuesday, The BOJ maintained its YCC limits, buying 400 billion yen worth of bonds and Kazuo Ueda as Kuroda’s successor is scheduled to testify in the upper house of Japan’s parliament this Friday.

Ueda’s comments before the parliament could follow a similar dovish line that Kuroda set during his time in charge. While he may agree academically that ultra-low interest rates are a long-term problem, how to change policy without hurting the economy is a much more complex question going forward.

As a result of external forces, especially rising prices of products and services, inflation is rising in Japan. The big fall in the value of the yen last year amplified this effect, making imported goods much more expensive. Such inflation is considered unhealthy because it is not supported by rising domestic demand from a thriving economy. In fact, rising prices may cause the economy to suffer more. This makes it difficult for the BOJ to start raising interest rates like other central banks. And the significant interest rate differential will still pose a risk for just the future.

Technical revision

EURJPYD1 – A temporary peak was recorded at 144.15 and the daily price bias for the period still shows an upward trend, despite the decline in the last 2 trading days. The price is currently above the adjacent 52-day and 100-day EMAs, and these 2 EMAs are sure to be a dynamic support around the price 142.00. For now, the corrective decline from 148.39 looks finished 137.37. A step up 144.15 could expand 137.37 bounce back to 146.72 another resistance. However, sustained trading below the 52- and 100-day EMAs would suggest that a correction from 148.39 is still underway and could approach the 200-day EMA, around 140.50. RSI showed weakening rally momentum, turning lower before touching overbought levels, while MACD is still dynamically above the buy zone

Click here to access our economic calendar

Ada Phangestu

Market Analyst – HF Educational Office – Indonesia

Disclaimer: This material is provided as general marketing communication for informational purposes only and does not constitute independent investment research. Nothing in this communication contains or should be considered to contain investment advice or an investment recommendation or a solicitation to buy or sell any financial instrument. All information provided is collected from reputable sources and any information containing an indication of past performance is not a guarantee or a reliable indicator of future performance. Users acknowledge that any investment in leveraged products is characterized by a degree of uncertainty and that any investment of this nature involves a high level of risk for which users are solely responsible and liable. We shall not be liable for any loss arising from any investment made based on the information provided in this communication. This communication may not be reproduced or redistributed without our prior written consent.

Source Link

Related Posts

%d bloggers like this: