USDJPY on track to extend its gains?
“High expectations towards prolonged interest rate hike push US dollar upwards.”
US dollar edges higher against other major currencies following high expectations for more interest rate hike due to stubbornly high inflation. Last week, Federal Reserve meeting minutes revealed that officials are concerned on inflation level which remains high. They conclude that a prolonged interest rate hike may be required to bring inflation down to their 2% target for the long-run. On the other hand, market participants are currently waiting for upcoming manufacturing and non-manufacturing data from the US to gauge its economic progression.
Technical Analysis
USDJPY, Daily: The pair extend its gains slightly after closing above 134.90. However, overall upside bias were diminished as 200-MA line caps any substantial gains for the time being. We may expect the pair to hover sideways in the mean time until a close above 200-MA line is achieved to thread higher.
Resistance level: 142.35, 150.15
Support level: 134.90, 127.10
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