- USD / JPY wins on Fed's decision and US-US trade news.
- American unemployment claims fall to 228k, supporting a large USD force.
- Technical indicators show support at 144.78 and resistance to 146.18.
The USD / JPY pair increased above while the US Dollar (USD) has strengthened following the decision of the Federal Reserve to leave the interest rates unchanged, associated with a renewal of optimism on American trade links. US President Donald Trump stressed what he described as a “major breakthrough” in trade relations with the United Kingdom, stimulating the feeling of the market. However, caution remains as details on the agreement indicates that a 10% tariff on British goods will, in a potentially, temper the initial enthusiasm.
The US dollar index (DXY) exceeded the 100.00 criticism mark, supported by solid economic data and the stable political position of the federal reserve. The weekly unemployment allegations fell to 228k for the week ending on May 3, against 241K the previous week, reporting a continuous force on the American labor market. The Bank of Japan (BOJ) from its March meeting showed a cautious perspective, with decision -makers concerned with the impact of American prices on the Japanese economy dependent on exports. This divergence in central bank policies favored the USD on the JPY.
Technical analysis
Technically, the USD / JPY is exchanged on a bullish model, currently oscillating nearly 146.00 after reaching a daily top of 146.18. The RSI is 54.16, reflecting a neutral bias, while the MacD shows a clear purchase signal. The short -term mobile averages, including the 10 -day EMA (143.90) and the SMA at 10 days (143.69), are aligned in an increased configuration. However, longer -term resistance levels remain at SMA at 100 days (150.55) and 200 -day SMA (149.58), which potentially capped other gains.
The main levels of support are identified at 144.78, 144.63 and 144.56, while the resistance is observed at 146.18, 146.42 and 148.35.
In summary, the USD / JPY remains ready to rise as long as it holds above the main levels of support, traders closely monitoring the incoming American economic data and geopolitical titles for potential volatility in future sessions.
Daily graphic
