USD/JPY continued to trade lower, tracking the broader decline in USD and UST yields, note OCBC FX Strategists Frances Cheung and Christopher Wong.
USD/JPY continues to trade lower
“Earlier in the week, the BoJ Governor presented a paper to a government panel, which reiterated that the BoJ would continue to raise interest rates if the economy and prices perform as the BoJ expects. The Fed-BoJ policy changes will lead to a narrowing of UST-JGB yield spreads and this should continue to support the overall direction of travel for USD/JPY to the downside.”
“The pair was last seen at 143.53. The bullish momentum on the daily chart is fading while the RSI turned down. Sideways trading is likely to continue. Support at 143.45 (recent low), 142 levels. Resistance at 145.90 (21 DMA), 147.20 (recent high).”
Source: Fx Street
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