Japanese Retail Sales Show Strong Performance, Attention Shifts to US Inflation in USD/JPY Forecast

Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, we are diving into the latest developments in the USD/JPY market and what investors need to keep an eye on in the coming days.

After the recent inflation and retail sales figures, investors need to pay close attention to the commentary coming from the Bank of Japan. BoJ Governor Kazuo Ueda and Board members have been signaling a slow move toward policy normalization, which could impact the Yen. Dovish comments may prompt intervention threats from the Japanese government to support the currency.

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Amidst an uncertain macroeconomic environment, a deteriorating labor market could also impact consumer spending trends. This is crucial information for investors looking to make informed decisions in the market.

Event Alert: US Personal Income and Outlays Report

The upcoming release of the Personal Income and Outlays Report is highly anticipated and will be a key focus for investors. Hotter-than-expected inflation numbers may shift bets on a Fed rate cut in the first half of 2024. Economists are forecasting an increase in the Core PCE Price Index, which could have implications for borrowing costs and consumer spending.

Short-term Forecast

The near-term trends for the USD/JPY will be influenced by the Personal Income and Outlays Report. Positive figures could reduce expectations of a Fed rate cut, but intervention threats from the Japanese government may limit the impact on the currency pair.

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USD/JPY Price Action

On the daily chart, the USD/JPY is showing bullish signals as it remains above the 50-day and 200-day EMAs. A breakthrough above the 151.685 resistance level could signal a move towards the 152 handle. However, a drop below the 151 handle could invite bearish pressure, with the 148.529 support level coming into play.

Overall, the market is poised for potential volatility in the coming days, and investors should stay tuned for further developments. Stay connected with Extreme Investor Network for more unique insights and analysis in the stock market world.

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