The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
Everything points to fall of USD/JPY
2020-10-16 • Updated
The whole day the market sentiment has remained risk-off amid a stalemate over fiscal stimulus. The US economy needs it now, especially households and small businesses. However, officials continue discussing its amount and ways of spending it as upcoming elections increased tensions.
Elsewhere, new virus cases are steadily rising, forcing countries to impose stricter restrictions. All news concerning Covid-19 and vaccine tend to have a huge impact on the market. On the Brexit front – total uncertainty. As a result, investors poured their capital into safe-haven assets such as the USD and the JPY. It looks like the yen is outperforming.
The US core retail sales came out better than analysts expected, which helped the USD to rise briefly. However, USD/JPY has turned to the downside again. Let’s look at the charts.
On the daily chart, we can see the formation of the bearish – descending triangle pattern. The move below the key psychological mark of 105.00 will drive the pair down to the significant support of 104.50. USD/JPY has failed to cross it a few times, so we can expect the price to bounce off it briefly. The breakout below this level will drive the pair to the next support of 104.00. Resistance levels are 105.70 and 106.05.
Elsewhere, if we look at the 4-hour chart, we’ll notice the dead cross: the 50-period moving average has crossed the 200-period moving average upside down. In this timeframe, we can even set the closer support at 105.15. The move above it will open doors towards 105.00.
The oil prices rally and world central banks’ dovish monetary policy caused by the Covid-19 pandemic were the main reasons for current inflation growth…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?