USD/JPY Rebounds as US Data Surprises
The USD/JPY pair has been making moves, currently sitting at 141.63 levels. This rebound comes as a result of higher UST yields following better-than-expected US data. Analysts at OCBC, Frances Cheung and Christopher Wong, anticipate more volatility for USD/JPY as the FOMC decision looms.
Key Points:
- USD/JPY rebounds alongside higher UST yields after US data exceeds expectations.
- Daily momentum lacks a clear bias, but RSI shows an uptick.
- Downside bias persists with caution for potential short-term rebound risks.
- Resistance levels at 143.67 (21 DMA) and 144.60 (23.6% fibo retracement).
- Support levels at 140.50, 139.60, and 138.
Anticipating FOMC Volatility
As the FOMC decision approaches, expect USD/JPY to experience heightened volatility leading up to and following the announcement and press conference. Stay tuned for potential market movements.
Analysis:
The USD/JPY pair’s rebound signifies the impact of US economic data on currency markets. Higher UST yields reflect positive sentiment towards the US economy, driving the USD higher against the JPY. The upcoming FOMC decision adds an element of uncertainty, contributing to potential price swings in the USD/JPY pair.
For investors and traders, understanding these market dynamics is essential for making informed decisions. Monitoring resistance and support levels can help navigate potential price movements, while staying informed about economic events like the FOMC decision is crucial for anticipating market volatility.