USD/JPY Forecast September 16-20 – Buyers Eye BoJ Minutes U.S. GDP


    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%, effectively beneath the preliminary estimate of 1.eight%.  The federal government is anticipated to implement a brand new gross sales tax in October, which may dampen development and even push the weak economic system into recession.

    The Japanese economic system grew 1.three% within the second quarter, on an annualized foundation. This was considerably decrease than the preliminary estimate of 1.eight%. Manufacturing information for July was a mixture. Core Equipment Orders fell 6.6%, in comparison with a powerful achieve of 13.9% a month earlier. There was higher information from Industrial Manufacturing, which rebounded with a achieve of 1.three%, after a decline of three.three%.

    Within the U.S., the Federal Reserve lowered charges by 25 foundation factors, a transfer that was extensively anticipated. This resulted in a muted response on the foreign money markets. Fed cuts are sometimes accompanied by a dovish message from policymakers, however this time the Fed sounded extra hawkish than anticipated. Jerome Powell stated that the U.S. financial image was “favorable” and that the speed minimize was an insurance coverage coverage in case financial circumstances worsened. Elsewhere, the Philly Fed Manufacturing Index slowed for a second straight month, falling to Nonetheless, this beat the estimate of 10.9.

    Key information updates for USD/JPY


    USD/JPY Technical Evaluation

    We begin with resistance at 110.62.

    109.73, which has held in resistance for the reason that finish of Might. 109.35 is shut by.

    108.70 follows.

    108.10 was a swing low in late Might.

    107.30 is a right away help line. It may see motion early within the week.

    106.61(talked about final week) is subsequent.

    105.55 has held in help since late August.

    104.65 has held agency for the reason that first week of January. It’s the closing help line for now.

    USD/JPY Sentiment

    I’m impartial on USD/JPY

    The greenback has flexed some muscle in current weeks, as traders haven’t proven a lot urge for food for the safe-haven Japanese yen. The U.S. economic system stays in strong form, regardless of final week’s charge minimize. With tensions working excessive within the Persian Gulf, any breakout of hostilities may dampen threat urge for food and enhance the Japanese foreign money.

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