USD/JPY turned lower after 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 behave as the BoJ expects.
Sideways trading is likely
“Policy changes by the Fed and BoJ will lead to a narrowing of yield spreads between USTs and JGBs, and this should continue to support the overall direction of USDJPY to the downside. On the other hand, the sell-off in equities (retrenchment in risk appetite) was also another factor weighing on USDJPY.”
“The pair was last seen at 145.20. The bullish momentum on the daily chart remains intact while the decline in the RSI moderated. A sideways trade is likely. Resistance at 146.10 (21-DMA), 147.20 (recent high). Support at 144.40, 143.45 (recent low).”
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.
