USD/JPY extends gains as focus turns to Fed Chair Warsh’s speech
USD:
The US dollar has been mixed in the last couple of days, with traders likely taking profits and hedging ahead of today’s Fed Chair Warsh speech at Jackson Hole. He’s not expected to give forward guidance, but what traders will be more focused on is whether he leans against the easing in financial conditions following the Treasury buyback announcement and Bessent’s “verbal” intervention to suppress long-term yields
If he doesn’t, the US dollar will likely come under renewed pressure from further easing in financial conditions and the dovish repricing in near-term interest rate expectations. On the other hand, if he pushes back saying things like "recent easing in financial conditions, if sustained, could complicate the process of returning inflation to our target" or "if recent easing threatens progress toward price stability, we will not hesitate to respond appropriately" and so on, the market may retighten financial conditions and give the greenback a boost.
JPY:
On the JPY side, the currency continues to stay under pressure due to lack of changes on the fundamental side. The BoJ rate hike in September is largely priced in, so that’s not going to change anything. The trend is unlikely to change without a dovish repricing in Fed interest rate expectations or a faster BoJ tightening pace.
USDJPY TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that USDJPYhas been slowly recovering ground after the intervention, with the first major target being the resistance zone around the 160.50 level. If the price gets there, we can expect the sellers to step in with a defined risk above the resistance to position for a drop back into the 155.00 handle. The buyers, on the other hand, will look for a break to increase the bullish bets into new cycle highs.
USDJPY TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a minor support zone around the 158.50 level. If we get another pullback into the support, we can expect the buyers to step in with a defined risk below it to keep pushing into new highs. The sellers, on the other hand, will look for a break to pile in for a drop into the 155.00 handle next.
USDJPY TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we have an upward trendline defining the bullish momentum. The buyers will likely continue to lean on the trendline with a defined risk below it to keep pushing into new highs. The sellers, on the other hand, will look for a break to target a pullback into the 158.50 support. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Today, all eyes will be on Fed Chair Warsh’s speech at the Jackson Hole Symposium. The prepared remarks are typically released either moments before or simultaneously as the Fed Chair delivers his speech.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
FX初心者には必須 無料のうちにGET！
