- The USD/JPY wins after the Fed decision and the optimistic commercial news between the US and the United Kingdom.
- Une.Uu unemployment applications fall to 228K, supporting the general strength of the USD.
- Technical indicators show support in 144.78 and resistance in 146.18.
The USD/JPY torque shot up as the US dollar (USD) was strengthened after the federal reserve decision to maintain unchanged interest rates, along with a renewed optimism on commercial ties between the US and the United Kingdom. The president of the USA, Donald Trump, highlighted what he described as a “great advance” in commercial relations with the United Kingdom, which promoted the feeling of the market. However, caution persists, since the details about the agreement indicate that a 10% tariff on the assets of the United Kingdom will be maintained, which could moderate the initial enthusiasm.
The dollar index (DXY) exceeded the critical brand of 100.00, supported by robust economic data and the stable political position of the Federal Reserve. The weekly unemployment requests fell to 228K for the week that ended on May 3, compared to 241K in the previous week, pointing out a continuous strength in the US labor market. The minutes of the March meeting of the Bank of Japan (BOJ) showed a cautious perspective, with those responsible for policies worried about the impact of US tariff Japan This divergence in the policies of the central banks has favored USD about the JPY.
Technical analysis
Technically, the USD/JPY is negotiating in a bullish pattern, currently around 146.00 after reaching a daily maximum of 146.18. The RSI is 54.16, reflecting a neutral trend, while the MACD shows a clear purchase signal. The short -term mobile socks, including the EMA of 10 days (143.90) and the 10 -day SMA (143.69), are aligned in an upward configuration. However, long -term resistance levels remain in the 100 -day SMA (150.55) and the 200 -day SMA (149.58), which could limit additional profits.
The key support levels are identified in 144.78, 144.63 and 144.56, while the resistance is observed in 146.18, 146.42 and 148.35.
In summary, the USD/JPY remains prepared for greater rise provided it is maintained above the key support levels, with the operators closely monitoring the US economic data and the geopolitical headlines in search of potential volatility in the next sessions.
Daily graph
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.
