Market Analysis: Japanese Yen poised for impact ahead of BOJ meeting on USD/JPY, EUR/JPY, AUD/JPY.
Short-Term Momentum and Key Levels to Watch in USD/JPY, EUR/JPY, and AUD/JPY
What is the outlook for the USD/JPY, EUR/JPY, and AUD/JPY pairs amid recent economic data and central bank decisions?
As investors and traders look to upcoming economic data and an upcoming Bank of Japan (BOJ) meeting this Friday, the USD/JPY, EUR/JPY, and AUD/JPY pairs have shown mixed signals. Here’s what to watch for in each pair and what the charts are saying:
Despite recent hawkishness from the Federal Reserve, USD/JPY has struggled to break above a tough resistance area at 135.00-138.00. However, short-term upward momentum remains intact as long as the pair stays above the horizontal trendline from mid-February at about 135.25.
EUR/JPY is starting to look heavy, with the rally showing signs of fatigue. The pair faces resistance at the 130.00 level, while the 50-day moving average near 130.70 supports.
AUD/JPY risks a minor double top, with resistance around 83.60. However, recent bullish momentum suggests a potential upside breakout shortly.
- The BOJ is expected to keep monetary policy settings steady during their meeting on Friday, including interest rates and yield cap settings.
- The USD/JPY pair remains at crossroads due to the tough resistance area at 135.00-138.00.
- US jobs data and CPI numbers due next week could potentially shift the needle in favor of a 50-basis point rate hike during the next FOMC meeting on March 21-22.
- Fed Chair Powell has reiterated the message of higher and faster interest rate hikes but has stressed that the decision depends on incoming data.
While near-term momentum remains intact for the USD/JPY pair, the EUR/JPY and AUD/JPY pairs face potential resistance levels that could prevent them from reaching other highs. In addition, investors and traders should closely monitor upcoming US jobs data and inflation numbers to potentially inform decisions on rate hikes during the next FOMC meeting.
Recent economic data and central bank decisions have generated mixed signals in the USD/JPY, EUR/JPY, and AUD/JPY pairs. However, as always, investors and traders need to research and analyze before making any investment decisions.