Good morning Traders!
Bank of Japan watchers and analysts are now starting to think that a change in the BOJ
policy might come sooner then expected, and yesterday we saw the Japanese Yen
strengthening against many of its trading partners.
USD/JPY
One of the biggest losers was the US dollar. With US CPI reading which came in as the
market expect, at 6.5%, the US dollar was weaker across the board.
After finding support at around the level of 130.5, a low that was formed in August 2022,
which from that point the market has accelerated strongly to pass the level of 150.
Coming back into that level, the buyers tried again, however the rally failed to materialised
past the previous Daily swing Lower Low at around the level of around 134.5. The market
has now traded lower again, and this time also closed below the 130.5 level for the first
time since June 2022. I’ll be looking for a potential retest from below of this strong S/R
level.
GBP/JPY
Another market on my watchlist today is GBP/JPY, with UK GDP data which is expected
to come out at -0.3%, down from last month reading of 0.5%, a lower then expected
reading may be seen as bearish for the British Pound.
Both the Daily and the Weekly charts are in a confirmed downtrend, and while price tried
to hold above the level of 158.50, yesterday the market broke through this level and close
below it. I’ll be looking at lower timeframes for potential setups in the direction of the
overall trend.
Happy Trading!
