USD/JPY Weekly Outlook
USD/JPY’s rise from 127.20 resumed last week by breaking through 137.90 resistance. But as a temporary top was formed at 138.73, initial bias is turned neutral this week first. Downside of retreat should be contained by 136.31 support to bring another rally. Break of 138.73 will turn bias back to the upside for 100% projection […]
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The week ahead for USD/JPY is expected to be volatile, with the pair likely to be range-bound between 132.84 and 136.40. The main drivers of the pair will be the US Federal Reserve's monetary policy decision on Wednesday and the Bank of Japan's policy meeting on Thursday.
The Fed is extensively expected to raise interest rates by 50 basis points at its incoming meeting, which would be the largest increase since 2000. This could weigh on the dollar, as higher rates would make US assets less attractive to foreign investors. However, the Fed is also likely to signal that it will continue to raise rates aggressively in the coming months, which could support the dollar.
The BoJ is also expected to keep its policy settings unchanged at its meeting. However, the bank may signal that it is willing to tolerate more inflation, which could weigh on the yen.
In addition to the central bank meetings, investors will also be watching the release of US economic data, including the May jobs report on Friday. Strong jobs growth could support the dollar, while weak data could weigh on the currency.
Overall, the week ahead is expected to be volatile for USD/JPY. The pair is likely to be range-bound between 132.84 and 136.40, with the main drivers being the United States (U.S.) Federal Reserve and the Bank of Japan.
Here are some key events that could impact USD/JPY in the week ahead:
• US Federal Reserve monetary policy decision (Wednesday, May 24)
• Bank of Japan monetary policy meeting (Thursday, May 25)
• US non-farm payrolls report (Friday, May 26)
Here are some key technical levels to watch for USD/JPY in the week ahead:
• Support: 132.84
• Resistance: 136.40
Analytic Dave
AnalyticalDave is a personal financial analysis portfolio that captures my Derivatives trading, stock, and investing journey. My portfolio does NOT act as a financial advisor to any community. It is only purposed for journaling my story as a self-taught trader and investor.
