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USD/JPY Analysis March 16, 2023

Create at 4 days ago (Mar 16, 2023 19:07)

JPY weakens heavily, inflation higher than expected

After inflationary pressures around the world, Japan has been waiting for this moment for a long time due to its deflation problem. The inflation rate has increased every month and in the latest announcement on February 23, 2023. The consumer price index (CPI) was at 4.3% and is expected to continue increasing.

Haruhiko Kuroda, the governor of the Bank of Japan (BoJ) who will finish his term in April.He was revealed that the loose monetary policy he has implemented during his 10-year term has successfully revived the Japanese economy and helped it escape deflation.

The BoJ continues to keep interest rates low and will continue with yield curve control while also maintaining the range of fluctuations in the yield of 10-year government bonds at -0.5% to 0.5%. The BoJ also announced that the trend of inflation will be moderate until mid 2023 due to government support for energy prices and easing pressure from high consumer goods prices, indicating that the Japanese economy may not expand in the fourth quarter amid increased pressure from high inflation and slow production activity.

In addition, Japan also has to contend with rapidly declining demand for Japanese goods amid a sluggish global economy. In January of this year, Japan suffered its largest trade deficit in 44 years, with exports rising just 3.5% compared to the previous year, a significant slowdown from the 11.5% expansion in December.

The trade deficit figures combined with GDP growth of just 0.6% in the fourth quarter of the previous year and higher-than-target inflation rates, reflect the challenge facing the Bank of Japan as it continues to employ special monetary easing policies to stimulate economic growth. There is also speculation about whether the next governor of the Bank of Japan will change the current monetary policy or not.

Technical analysis data (5H)

USD/JPY Analysis today

Pivot Points March 16, 2023 6:25 PM. GMT+7
Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 132.02 132.30 132.56 132.84 133.11 133.38 133.65
Fibonacci 132.30 132.50 132.63 132.84 133.05 133.18 133.38
Camarilla 132.69 132.74 132.79 132.84 132.89 132.94 132.99
Woodie's 132.02 132.30 132.56 132.84 133.11 133.38 133.65
DeMark's - - 132.43 132.78 132.98 - -
Technical Indicators March 16, 2023 6:25 PM. GMT+7
Name Value Action
RSI(14) 36.410 Sell
STOCH(9,6) 29.838 Sell
STOCHRSI(14) 32.114 Sell
MACD(12,26) -0.650 Sell
ADX(14) 38.599 Neutral
Williams %R -82.842 Oversold
CCI(14) -91.8048 Sell
ATR(14) 0.9357 Less Volatility
Highs/Lows(14) -0.4082 Sell
Ultimate Oscillator 47.497 Sell
ROC -0.248 Sell
Bull/Bear Power(13) -1.3940 Sell




Summary:Strong Sell



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