- The USD/JPY backets to about 148.35 after a three -day winning streak.
- The tariff agreement between the US and the EU has strengthened the US dollar.
- Investors expect the monetary policy of the FED and the BOJ this week.
The USD/JPY pair lowers about 148.35 during the Asian negotiation session on Tuesday, struggling to extend its three -day winning streak. The prospects of the torque remain firm since the US dollar (USD) demonstrates strength, after the announcement of a commercial agreement between the United States (USA) and the European Union (EU).
This weekend, officials on both sides of the Atlantic approved a tariff agreement, which decreased interruption fears in global commercial flow and the collapse of the US supply chain.
At the time of writing, the dollar index (DXY), which follows the value of the dollar against six main currencies, is maintained with profits near the weekly maximum around 98.67.
Meanwhile, investors expect the Federal Reserve Monetary Policy Ads (FED) and the Bank of Japan (BOJ), which are scheduled for Wednesday and Thursday. Both central banks are expected to maintain interest rates at their current levels.
In Tuesday’s session, investors will focus on US Jolts job offers data for June, which will be published at 14:00 GMT. Economists expect US companies to have published 7.55 million jobs.
The USD/JPY is quoted near the horizontal resistance of the ascending triangle graphic pattern around 148.60. The ascending edge of the aforementioned pattern is drawn from the minimum of April about 139.90. The 20 -day exponential (EMA) mobile average is inclined up to 147.04, indicating that the short -term trend is upward.
The 14 -day relative force (RSI) index strives to break over 60.00. A new bullish impulse would arise if the RSI exceeds that level.
The pair would see more rise towards the psychological level of 150.00 and the maximum of March 28, 151.20 if it breaks above the maximum of July 16, 149.19.
On the other hand, a reversal movement of the torque below the minimum of July 24, 145.85 would pave the road to the minimum of July 7 in 144.22, followed by the minimum of July 3, 143.45.
USD/JPY DAILY GRAPH
Economic indicator
Fed interest rates decision
The Federal Reserve (Fed) Delibera on monetary policy and makes a decision on interest rates in eight preprogrammed meetings per year. It has two mandates: maintain inflation in 2% and maintain full employment. Its main tool to achieve this is to establish interest rates, both to those that it lends to banks and to those that banks lend each other. If you decide to raise the fees, the US dollar (USD) tends to strengthen since it attracts more foreign capital tickets. If the rates lower, it tends to weaken the USD since capital is drained towards countries that offer greater returns. If the rates remain unchanged, the attention focuses on the tone of the Federal Open Market Committee (FOMC), and if it is a hard line (expectancy of higher interest rates in the future) or moderate (expectation of lower rates in the future).
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Next publication:
LIE Jul 30, 2025 18:00
Frequency:
Irregular
Dear:
4.5%
Previous:
4.5%
Fountain:
Federal Reserve
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
