Renowned investment managers OCBC Frances Cheung and Christopher Wong have observed a continued downward trend for USD/JPY, in line with the overall weakening of the US dollar.
Key Points:
- Current price: 142.86
- Bullish momentum fading, RSI falling
- Death cross formation on daily chart
- Support levels at 142 and 141.70 (Aug low)
- Resistance levels at 145.70, 146.40, and 147.20
The recent submission by the Bank of Japan (BoJ) Governor to the government panel indicates a commitment to raising interest rates if economic conditions align with BoJ expectations.
According to experts, shifts in policy by the Federal Reserve and BoJ, along with the normalization of interest rates, could lead to a faster convergence of US Treasury and Japanese Government Bond yield differentials. This trend is expected to further drive the USD/JPY exchange rate lower.
Analysis:
For investors and individuals involved in forex trading, the current scenario suggests a bearish outlook for USD/JPY. Factors such as central bank policies and economic performance will continue to influence the direction of the currency pair. It is crucial to monitor key support and resistance levels to make informed investment decisions.