USD-JPY fundamental analysis of the pair
2022.12.19 13:33
USD/JPY
Budrigannews.com – The Japanese yen has begun the week in good shape. It is trading at 136.22 in the European session, down 0.38 percent. The yen has had a busy week, with USD/JPY trading in a 350-point range but ending the week almost unchanged.
Market participants are keeping an eye on April 2023, when Governor Kuroda of the Bank of Japan will step down and a new governor will be appointed. This has sparked speculation that the bank’s policy might be altered as a result of the new leadership.
Today, a report said that the government and the Bank of Japan could change their ten-year pledge to achieve the 2% inflation target “at the earliest date possible.” At a time when other major central banks are busy raising rates to curb inflation, the BoJ has maintained its radical stimulus program and kept interest rates extremely low.
When Japan’s economy was experiencing deflation in 2013, this policy was implemented. The statement may be out of date due to rising consumer prices and a weak yen, and the new BoJ Governor may consider it appropriate to revise it, possibly making the inflation target more flexible.
More GBP-USD technical analysis of the pair
There is rising hypothesis that the new lead representative could change yield bend control, which has kept a cap on and energized the yen’s sharp plunge this year. However, for the time being, it is likely to continue as usual; the BoJ is scheduled to conclude its two-day meeting on Tuesday without altering monetary policy.
Support for the USD/JPY is found at 1.3707.
Following this is support at 1.3620, followed by resistance at 138.25 and 138.90.
