JPY starts the week with decline
According to Japanese Finance Minister Shunichi Suzuki, there was "no discussion" about exchange rates during the recent meeting of Group of Seven (G7) finance ministers and central bank chiefs in India. This news comes as the yen weakened to around ¥145 per dollar last month, prompting concerns that the Japanese government may intervene in the currency market to support the yen. However, the yen has rebounded strongly this month to approximately ¥138 per dollar. A weak yen can benefit Japanese exporters and raise import costs for businesses and consumers. On another note, Suzuki reiterated Japan's strong support for Ukraine. Bank of Japan Governor Kazuo Ueda highlighted the uncertainty in the global economy, which is influencing the central bank's decision to maintain ultra-easy monetary policy despite inflation exceeding the target. The BOJ's loose monetary policy has been a key factor contributing to the yen's weakness compared to other major currencies. Keep an eye on these developments for potential impact on forex markets!
USDJPY - D1 Timeframe
USDJPY is currently resting on top of a double trendline situation within a strong pivot range. Looking also at how the moving averages are poised, there is a high likelihood that the price rebounds off the trendline in continuation of the original bullish movement.
Analyst’s Expectations:
Direction: Bullish
Target: 141.986
Invalidation: 136.867
GBPJPY - D1 Timeframe
GBPJPY, as shown in the chart, is currently trading inside a rising channel pattern. The moving averages are also currently in a bullish array, which lends credibility to the likelihood of a bullish reaction from the support trendline.
Analyst’s Expectations:
Direction: Bullish
Target: 183.245
Invalidation: 179.360
CADJPY - D1 Timeframe
CADJPY has, at this time, reached a strong demand zone. The demand zone has confluences from the trendline support, the 50-day moving average, and the bullish array of the moving averages. Based on the observed confluences, I will be watching for a continuation of the bullish trend.
Analyst’s Expectations:
Direction: Bullish
Target: 107.035
Invalidation: 103.670
CONCLUSION
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