USD/JPY Forecast: Yen Volatility as BoJ and US Jobless Claims Influence Sentiment
==========
The Bank of Japan's Summary of Opinions on August 8 highlighted key points including the expectation of gradual increase in underlying inflation, upside pressure on prices, and the need for careful future policy. Bank of Japan Deputy Governor Uchida Shinichi reassured the markets regarding rate hikes. The USD/JPY gained 1.65% on August 7 but was down 0.58% on August 8. Market uncertainty could fuel a flight to safety and raise concerns of another Yen carry trade unwind-fueled market meltdown. US jobless claims could be crucial for sentiment toward the Fed's rate path. Economists forecast continuing jobless claims will fall from 1,877k to 1,870k. A weaker labor market could affect wage growth and reduce disposable income, potentially impacting the US economy. The Fed may respond with more aggressive rate cuts. Bets on a more dovish Fed rate path could support a USD/JPY drop toward 140. The USD/JPY price action shows bearish trends and a potential move toward the 148.529 resistance level or a fall toward the 143.495 support level. The 14-day RSI at 25.98 shows the USD/JPY in oversold territory. Central bank commentary and US jobless claims need consideration. The article also includes forecasts for AUD/USD and EUR/USD, as well as information about the author and forex brokers.
#Usd/jpy #BankOfJapan #UsJoblessClaims #YenVolatility #Forex
https://www.fxempire.com/forecasts/article/usd-jpy-forecast-yen-volatility-as-boj-and-us-jobless-claims-influence-sentiment-1452057
FX Empire /
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2024-08-08 02:11:16
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wss://relay.damus.ioPublished at
2024-08-08 02:11:16Event JSON
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"content": "USD/JPY Forecast: Yen Volatility as BoJ and US Jobless Claims Influence Sentiment\n==========\n\nThe Bank of Japan's Summary of Opinions on August 8 highlighted key points including the expectation of gradual increase in underlying inflation, upside pressure on prices, and the need for careful future policy. Bank of Japan Deputy Governor Uchida Shinichi reassured the markets regarding rate hikes. The USD/JPY gained 1.65% on August 7 but was down 0.58% on August 8. Market uncertainty could fuel a flight to safety and raise concerns of another Yen carry trade unwind-fueled market meltdown. US jobless claims could be crucial for sentiment toward the Fed's rate path. Economists forecast continuing jobless claims will fall from 1,877k to 1,870k. A weaker labor market could affect wage growth and reduce disposable income, potentially impacting the US economy. The Fed may respond with more aggressive rate cuts. Bets on a more dovish Fed rate path could support a USD/JPY drop toward 140. The USD/JPY price action shows bearish trends and a potential move toward the 148.529 resistance level or a fall toward the 143.495 support level. The 14-day RSI at 25.98 shows the USD/JPY in oversold territory. Central bank commentary and US jobless claims need consideration. The article also includes forecasts for AUD/USD and EUR/USD, as well as information about the author and forex brokers.\n\n#Usd/jpy #BankOfJapan #UsJoblessClaims #YenVolatility #Forex\n\nhttps://www.fxempire.com/forecasts/article/usd-jpy-forecast-yen-volatility-as-boj-and-us-jobless-claims-influence-sentiment-1452057",
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