All eyes are on whether the current trend of yen and U.S. dollar buying will shift.
23.12.2022
- U.S. Core PCE Deflator
- U.S. Personal Income
The U.S. dollar strengthened yesterday after the U.S. third-quarter GDP figure, released yesterday, was revised upward from the market forecast of 2.9% to 3.2%. The USD/JPY pair broke through the 23.6% Fibonacci retracement level of the sharp decline triggered by the Bank of Japan’s policy change on the 20th of this week.During today’s Asian trading session, the pair is trading around 132.656. Since it has also broken above the 10-period moving average (MA) on the 4-hour chart, traders should watch for a continued rebound.
European currencies saw the pound fall against the yen after the UK’s third-quarter GDP, released yesterday, showed negative growth of -0.3%. The GBP/JPY pair fell by approximately 140 pips from 160.253 to 158.775, a movement that contrasted with that of the USD/JPY pair.Although the pair has rebounded during today’s Asian session, the daily RSI is just below 30 and still has room to fall, so traders should remain cautious of a potential decline heading into the European session.
Today’s schedule includes the French Producer Price Index at 16:45 European time, Turkey’s foreign visitor arrivals at 17:00, the Philippine unemployment rate at 18:00, India’s foreign exchange reserves at 20:30, and Mexico’s trade balance at 21:00, followed by the CanadianGDP, U.S. Durable Goods Orders, U.S. Personal Income, U.S. Core PCE Deflator, at 24:00 U.S. New Home Sales and the University of Michigan Consumer Sentiment Index, and at 25:00 Canada’s Fiscal Balance.We will be closely monitoring whether the current trend of yen buying and U.S. dollar buying—reflecting currency strength—will shift on this final day of the week.
Author: Keisuke Sakurai
