Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, Wall Street, and more. Today, we will be discussing the forecast for existing home sales in April and its potential impact on the US economy and the USD/JPY currency pair.
Economists are projecting a 0.5% increase in existing home sales for April, following a 4.3% decline in March. The housing sector is often seen as a barometer for the US economy, with a stronger housing market boosting consumer confidence and potentially leading to increased consumer spending and inflation.
Additionally, the Federal Open Market Committee (FOMC) members are closely monitoring housing services inflation, which could influence the timing of a potential Fed rate cut. Any uptick in demand in the housing sector could push inflation higher and delay rate cut discussions.
Aside from housing data, investors should pay attention to FOMC member speeches, such as those from Raphael Bostic, Loretta Mester, and Susan Collins. These speeches can provide valuable insights into the thinking of the central bank and potential monetary policy shifts.
Looking at the short-term forecast for the USD/JPY currency pair, upcoming Services PMIs and central bank commentary will be crucial factors to watch. Changes in service sector activity in Japan and the US could impact buyer demand for the USD/JPY, with the Bank of Japan considering these numbers in discussions about a possible interest rate hike in June.
On the price action front, the USD/JPY is currently trading comfortably above the 50-day and 200-day EMAs, signaling a bullish trend. A move towards the 157 handle could pave the way for a push towards 158 and potentially even higher towards the April 29 high of 160.209.
However, a break below the 155 handle could indicate a downside move towards the 50-day EMA and the 151.685 support level. The 14-day RSI at 57.51 suggests a potential move towards the April 29 high before entering overbought territory.
Stay tuned for more updates on US housing sector data and central bank news, as they could have a significant impact on the USD/JPY in the coming days. For more exclusive insights and analysis, visit Extreme Investor Network.