USD/JPY Forecast September 16-20 – Surging Greenback Breaks Above 108, Central Banks in Highlight

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    There are rising fears that Japan is headed for a recession. Japan’s GDP in Q2 posted a weak achieve of zero.three%, down from zero.four% within the preliminary estimate. On an annualized foundation, GDP was revised decrease to 1.three%, nicely under the preliminary estimate of 1.eight%.  The federal government is anticipated to implement a brand new gross sales tax in October, which may dampen progress and even push the weak financial system into recession.

    Over within the U.S., shopper inflation studies have been a blended bag. CPI slipped to zero.three%, down from zero.1%, however this matched the estimate. Core CPI remained regular at zero.three%, edging above the forecast of zero.2%. The week wrapped up with retail gross sales, which slowed significantly in August. Retail gross sales fell to zero.four%, down from zero.7% a month earlier. Core retail gross sales slowed to zero, in comparison with 1.zero% within the earlier launch. It was the primary time that core retail gross sales did not report features since March. The UoM Shopper Sentiment ticked decrease to 92.zero, simply beating the forecast of 90.four.

    Key information updates for USD/JPY

    Updates:

    USD/JPY Technical Evaluation

    We begin with 109.73, which has held in resistance because the finish of Might. 109.35 is shut by.

    108.70 follows.

    108.10 was a swing low in late Might.

    107.30 has held in resistance because the first week in August.

    106.61(talked about final week) stays related. It’s offering speedy assist.

    105.55 has held in suport since late August.

    104.65 has held agency because the first week of January. It’s the closing assist line for now.

    USD/JPY Sentiment

    I’m impartial on USD/JPY

    The greenback is having fun with a powerful run, and the message from the Federal Reserve this week may have a significant affect on whether or not the rally continues. With the Japanese financial system not in the very best of form, traders may even delicate to the message from the Financial institution of Japan.

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