All eyes are on the direction of the USD/JPY pair, which has broken into the 150-yen range for the first time in 32 years

All eyes are on the direction of the USD/JPY pair, which has broken into the 150-yen range for the first time in 32 years

21.10.2022

In yesterday’s U.S. currency trading, the U.S. dollar rose as the yield on the 10-year U.S. Treasury note climbed to 4.24%. The USD/JPY pair touched the key 150 yen level for the first time in 32 years—since August 1990—rising to 150.289.During today’s Asian trading session, USD/JPY has not seen a significant decline and continues to rise gradually along the 20-period moving average on the hourly chart. Although price movements are gradual, the RSI—which indicates market overheating—stands at 82 on the daily chart, so we should anticipate a correction.

European currencies saw the pound rise temporarily yesterday following the announcement that UK Prime Minister Truss had resigned. The GBP/USD pair rebounded by approximately 160 pips, climbing from 1.1169 to 1.1334. However, it was pushed back down by the strength of the U.S. dollar, retracing the entire gain.During today’s Asian session, GBP/USD is trading around 1.1214, just below the 200-period simple moving average (SMA) on the hourly chart. We will be watching closely to see if an upward move materializes during the European session.

Today, during Asian trading hours at 15:00, UK retail sales and Swedish employment data will be released; during European trading hours at 16:00, Turkey’s consumer confidence index and Hungary’s unemployment rate will be released; at 17:00, Philippine retail sales; at 20:00, Mexican retail sales;at 8:30 PM, India’s foreign exchange reserves; during U.S. trading hours at 9:30 PM, Canada’s retail sales; at 10:10 PM, remarks by Williams, President of the New York Fed; and at 11:00 PM, the Eurozone consumer confidence index. We will be closely monitoring the direction of the USD/JPY pair, which has broken into the 150 yen range for the first time in 32 years.