The BoJ announced its interest rate policy during the Asia trading session. The Japanese central bank retains its easy money policy and announces that the bank will conduct 12 trillion yens of purchase of fixed-rate 10-year JGBs at 0.25% for consecutive days, to support the economy. In sharp contrast to the Fed, the BoJ’s monetary policy has continued to disfavour the Japanese Yen in the foreseeable future.
On the technical side, USDJPY found support at our previously estimated support level of 133.5 and fresh resistance at 135.16. RSI for the pair sits at 56.98, as of writing. On the four-hour chart, USDJPY currently trades above its 50, 100, and 200-day SMA.
Support: 133.5, 132.5
EURUSD edged lower on the last trading day of the week. The U.S. Greenback recovered after a large sell-off on Thursday as market participants return to risk-off sentiment. The U.S. 10-year Treasury yield continued to fall as market participants weight economic concerns and soared inflation. The ECB’s decision to rotate into higher-yielding bonds has prevented the shared currency to fall further and retain some of the gains from Thursday.
On the technical side, EURUSD has met fresh resistance at 1.05483 after a three-day winning streak. Fresh support has formed at 1.04036 for EURUSD. RSI for the pair sits at 42.85, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1.05483, 1.07691
Support: 1.04036, 1.03783
GBPUSD experienced a correction on the last trading day of the week. As market participants process the most recent interest rate hike by the BoE, economic worries and inflation again weigh on the British Pound. The U.S. Greenback has also gained steam as risk-off sentiment continues to evolve around global markets. U.K. treasury bond yields have retreated 1.5%, while the U.S. treasury yield is rising modestly.
On the technical side, GBPUSD has met fresh resistance at 1.23806 and a new support level at 1.2173. RSI for Cable sits at 50.4371, as of writing. On the four-hour chart, GBPUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1.25944, 1.23806
Support: 1.2173, 1.20824
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