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As we dive into the latest events impacting the financial markets, let’s take a closer look at the upcoming Bank of Japan interest rate decision and press conference.
While market participants will be closely watching the numbers that influence buyer demand for the Japanese Yen, the focal point remains on the Bank of Japan interest rate decision. The consensus among analysts is for the BoJ to maintain interest rates unchanged on Friday (June 14).
However, beyond the interest rate decision, investors will be paying close attention to the monetary policy statement and press conference. Forward guidance on inflation, the economic outlook, and the potential timing of an interest rate hike will be key areas of focus. Additionally, Bank of Japan Governor Kazuo Ueda may provide insights into BoJ policy options to bolster the Yen.
US CPI Report, the Fed, and Consumer Sentiment – What Investors Need to Know
Turning our attention to the US, the Consumer Price Index (CPI) Report scheduled for Wednesday will be a significant event for investors. Economists are projecting the US annual inflation rate to hold steady at 3.4% in May, with the core inflation rate expected to soften slightly from 3.6% to 3.5%.
Higher-than-expected inflation figures could impact investor expectations regarding a potential September rate hike by the Federal Reserve. Following the latest US Jobs Report, the CPI Report could play a crucial role in shaping the Fed’s future rate trajectory.
On the horizon, the Federal Open Market Committee (FOMC) interest rate decision and press conference will be closely watched. Market expectations point towards the Fed keeping interest rates unchanged, with a focus on the economic projections and any adjustments to the Fed rate path since the March meeting.
Amidst all these developments, it’s essential to also keep an eye on producer prices, initial jobless claims, and the preliminary Michigan Consumer Sentiment figures. These data points can provide valuable insights into the health of the US economy and influence market sentiment.
Short-term Forecast and USD/JPY Price Action
Looking ahead, the near-term trends for the USD/JPY pair will be influenced by the outcomes of the FOMC and BoJ interest rate decisions, economic projections, and press conferences. A dovish Fed stance paired with a hawkish BoJ outlook could potentially push the USD/JPY pair below the 150 level.
When examining the USD/JPY price action, it’s worth noting that the pair is currently above both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating bullish sentiment. A potential retest of the 160 handle could be on the cards, with further upside towards the April 29 high of 160.209 if the bullish momentum continues.
However, a break below the 50-day EMA may signal a downside move towards the 151.685 support level. The Relative Strength Index (RSI) at 54.62 suggests room for further upside, potentially pushing the USD/JPY pair towards overbought territory.
As these events unfold and market dynamics shift, stay tuned to Extreme Investor Network for expert analysis and unique insights into the world of trading, Wall Street, and beyond.