USD/JPY Anticipated Attracting a Pause in Selling Order as Dollar Index Shows More Weakness
- USD/JPY experienced a fickled directional change, after reaching its lowest 1-day price of 126.67 during the Asian Trading period. Since three days ago the pair has been trading within a specific range. Thus the USD/JPY is hoped to keep narrowing its range as there are no major economic event in today’s trading period. Examining the present Dollar weakness, the USD may get some bids soon and will continue dipping. The USD/JPY is moving back and forth close to the 127.00 price support level.
USD/JPY Price Actuators
Dimming the Fed’s rate increases worries in the world market has attracted aggressive selling in the US dollar Index (DXY). The DXY has recorded a new monthly low of 101.43, and traders are expecting to see more weakness. Traders’ expectation of DXY weakness is based on the poor performance of the American GDP (Gross Domestic Product). The US Bureau of Economics published the yearly GDP figures of -1.5%, below the calculated -1.3% and the previous -1.4%. The poor performance of the US dollar index has played its part in influencing the USD/JPY price.
On the JPY side, the Statistics Bureau of Japan published the CPI ( Consumer Price Index) of 2.4%. The figure released by the body is below the predicted 2.7% and previous 2.5%. The Japanese government is concerned about the pegged price forces. Reacting to this concern, the BoJ’s (Bank of Japan) Governor has remarked that price increases will attract salary increases. This salary increase is a move to contain inflation.
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