USD/JPY Bearish Expectation with BOJ in Action!

24 de out. de 2023

The USD/JPY exchange rate reached a temporary support level at 149.50 after the strengthening of the US dollar. Economists predict a 4.2% growth in the US economy in the third quarter of 2023. The Bank of Japan (BoJ) announced an unplanned bond-buying operation. The USD/JPY rate found support after a correction from the key resistance level of 150.00. S&P500 futures recorded gains, and the delay in Israel's assault on Gaza improved market sentiment. The dollar rebounded in anticipation of positive GDP data scheduled for Thursday, with expectations of further restrictive measures by the Federal Reserve. The yield on US ten-year bonds decreased to 4.83%, and Fed members maintain a neutral stance on interest rate decisions. Jerome Powell of the Fed is expected to emphasize the need to keep rates steady but with the possibility of future restrictions. The Bank of Japan will conduct an unplanned bond purchase with specific amounts. Additionally, the price spiked at the swing low of 149.40, followed by a manual rise. At the 150 level, I expect a price correction downward with subsequent liquidity withdrawal at 148.80, followed by an upward move. It will be interesting to consider entries on M15 or M5 confirmation. Let me know what you think, and happy trading to all. Greetings from Nicola, the CEO of Forex48 Trading Academy. BOJ in azione!