USD/JPY Approaches A Psychological Level
2022.04.20 11:06
Stocks found some support in the last few sessions, probably due to changed flows after the Easter holidays. Technically, however, stocks are still in a downtrend when looking at the bigger scale, while the US Dollar Index remains in an uptrend.
We see USD/JPY moving into some late stages of recent impulsive development, so technically, we may expect some pullbacks. Still, the latest Fed’s Kashkari comments support US yields, so this will be a challenging task for USD/JPY bears.
Kashkari highlighted once more that inflation is way too high and that if supply chains do not improve, the Fed’s task will become more complex, and it will be necessary to do more to reduce inflation. But this may not be easy, especially as he warns about New Covid waves that can threaten the economy.
We see five waves up on the USD/JPY intraday chart, so bulls can slow down, but not as long as the red trendline holds. We need to see this one broken for a deeper correction. The strong psychological level is at 130.
USD/JPY hourly price chart.
