Trading Insights

USD/JPY

Cooling Inflation Adds USD Strength Despite BoJ Suppression

Pair appreciated despite conflict between Fed and US government. Cooling inflation data likely to add further strength to US, notwithstanding suppression from BoJ by selling their USD in open markets. Japan’s plan to monetize USD reserves may help solve debt issue to some extent, but if US keeps growing, may keep currency stable. President Trump ideally wants weaker USD to help American exports.

Key Levels: Support at 156.707 | Resistance at 159.414

Investor Takeaway: RSI below MA line trending downward with flat MACD selling pressures; cooling inflation strengthens dollar fundamentally despite BoJ intervention and Trump’s weak dollar preference.

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