USD/JPY Rises as Traders Wait for Fed and BOJ Decisions
July 30, 2018 11:41 am
This week will be an important one for the US and the Japanese economies as their central banks make their seventh interest rates decision. On Thursday, the Federal Reserve will conclude its two-day meeting and release its decision while BOJ will do so on Friday. Traders don’t expect the two banks to do any rate hikes this week but their statements could move the markets. They will listen to the Fed’s response to the US criticism on interest rates hikes. The most likely scenario is where the Fed Chair – who was appointed by Trump – reaffirms of the Fed’s independence. From the BOJ, they will look forward to the statement to identify any change in language.
Today, the dollar is strengthening against the Japanese Yen even after the positive retail sales from Japan. The data from the ministry of trade and commerce showed that the retail sales rose by an annualized rate of 2.6% in June. This was the highest level since January. It was better than the 1.7% increase which was expected and the 0.6% increase in May.
The pair is now trading at 111.07, which is slightly lower than the intraday high of 111.15. This level is slightly higher than the 25 and 50-day Simple Moving Average (SMA). It is also above the important support level of 110.80. As the week goes on, the pair could continue moving up to test the resistance level of 111.25.
This week will be an important one for the US and the Japanese economies as their central banks make their seventh interest rates decision. On Thursday, the Federal Reserve will conclude its two-day meeting and release its decision while BOJ will do so on Friday. Traders don’t expect the two banks to do any rate hikes this week but their statements could move the markets. They will listen to the Fed’s response to the US criticism on interest rates hikes. The most likely scenario is where the Fed Chair – who was appointed by Trump – reaffirms of the Fed’s independence. From the BOJ, they will look forward to the statement to identify any change in language.
Today, the dollar is strengthening against the Japanese Yen even after the positive retail sales from Japan. The data from the ministry of trade and commerce showed that the retail sales rose by an annualized rate of 2.6% in June. This was the highest level since January. It was better than the 1.7% increase which was expected and the 0.6% increase in May.
The pair is now trading at 111.07, which is slightly lower than the intraday high of 111.15. This level is slightly higher than the 25 and 50-day Simple Moving Average (SMA). It is also above the important support level of 110.80. As the week goes on, the pair could continue moving up to test the resistance level of 111.25.
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