Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things related to Wall Street. Today, we are focusing on the USD/JPY pair and the factors driving its price action in the short term.
In addition to keeping an eye on inflation numbers, it is crucial to pay attention to US jobless claims figures. While jobless claims may take a back seat to inflation data, an unexpected spike could shake up the markets. Furthermore, FOMC member commentary on inflation will also be closely watched. Members like John Williams, Susan Collins, and Raphael Bostic are scheduled to speak, and their reactions could impact currency movements.
As we look ahead to the short-term forecast for USD/JPY, key factors to consider include US producer prices, FOMC member chatter, and potential interventions by the Japanese government to support the Yen. Depending on the interplay of these factors, we could see either a bullish or bearish trend for the currency pair.
Turning our attention to the price action on the USD/JPY daily chart, the pair currently sits comfortably above both the 50-day and 200-day EMAs, signaling a bullish trend. A potential return to the April 10 high could pave the way for a move towards the 154 handle. However, factors like Japanese government interventions, US data releases, and Fed commentary will play a crucial role in determining the direction of the pair.
On the downside, a drop below the 152 handle could give bears an opportunity to test the 151.685 support level. The 14-day RSI sits at 68.53, indicating a potential move back towards the 153 handle before entering overbought territory.
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