USDJPY cautiously rebound, look ahead towards Fed comments.
“Market remain cautious as they assess possible economic developments from recently released data.”
USDJPY drifted higher during early European trading hours, mending some of its losses after greenback lost its appeal among investors. Risk sentiment remains vary as China releases their Q4 GDP data, which toppled forecasts but expanded at its slowest since 1970s. At the same time, investors will pay attention upon future Fed comments with regards to policy as recent inflation data shows depreciation for 2 consecutive months.
Quick recap on USDJPY
The pair took a sharp turn soon after touching multi-year high of 152.
USDJPY Weekly Technical Analysis
From weekly perspective, MACD shows a decline in bearish momentum, signalling possible rebound in the short-term.
USDJPY Daily Technical Analysis
From daily perspective, bulls took some small efforts to lift the pair. We may see a possible upside ahead but rather limited as it is bound by short-term downward trend pressure.
ORDER: BUY STOP
STOP LOSS: 128.20
Target 1: 131.30
Target 2: 133.30
ZFX Analyst’s Comment
For the time being, we expect the pair to experience short-term rebound as bears seemingly worn out of momentum. Nonetheless, we will still need to stay vigilant over possible pressure from upside due to downward trendline in lower timeframe.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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