The FX PostThe FX Post
    What's Hot

    Best 10 Crypto Trading Indicators to Choose & Make Profit

    May 26, 2022
    Diagram of growth in real estate prices. 3d illustration on white background.

    US Pending Home Sales Edged Down 3.9% in April on Rising Mortgage Rates

    May 26, 2022
    Close up of businessman hand pointing at abstract glowing grid with index and candlestick forex chart. Trade and financial data concept. Double exposure

    US Economy Shrank at 1.5% Annual Rate in Q1 of 2022

    May 26, 2022
    The FX Post The FX Post
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Best FX Post
      • Best Forex Robots
    The FX PostThe FX Post
    Home » USD/JPY Forecast: USD Reviving Safe-Haven Status Amid Geopolitical Tensions
    Forex Forex Forecasts

    USD/JPY Forecast: USD Reviving Safe-Haven Status Amid Geopolitical Tensions

    January 25, 20223 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    On Tuesday, January 25, 2022, the greenback edges near its two-week high amid the Ukrainian crisis. 

    • Investors return to USD as fears of military conflict in Ukraine ignite. 
    • DXY is edging closer to its two-week highs. 
    • Investors also appeared hesitant to make large predictions ahead of the key FOMC meeting.

    USD/JPY fundamental forecast

    The dollar moved higher on Tuesday, closing in on its two-week high, as investors sought safe-haven assets amid hostilities between Russia and the West over Ukraine and as the Federal Reserve’s policy meeting concluded.

    Strong DXY 

    The dollar index is trading at 96.12, up 0.26 % from its two-week high of 96.135 set on Monday.

    So far, the safe-haven yen has shed 0.10 % against the US dollar, keeping within striking distance of one-month highs.

    A positive rise in US Treasury bond rates functioned as a tailwind for the US dollar since the Fed is expected to tighten policy more quickly. This, in turn, was considered as a crucial driver in the USD/JPY pair’s slight uptick.

    Ukrainian crises 

    In the latest move to reassure apprehensive NATO partners in the face of a Russian military buildup in Ukraine, the US military placed some 8,500 troops on standby to deploy to Europe if required.

    Rising geopolitical uncertainty over Ukraine, as well as fears that rising borrowing prices might affect company earnings outlooks, continued to weigh on investors’ enthusiasm. This was reflected in a generally negative tone in the equity markets.

    Fed’s tightening policy 

    The Fed is slated to announce its decision on Wednesday, which should give new information on when the Fed will begin its policy tightening cycle. This will immediately impact USD price dynamics and offer a new directional push to the USD/JPY pair.

    Key data Releases from the US

    On the calendar front, we have Consumer Confidence and Richmond Manufacturing Index. Tomorrow we have the all-important Fed’s decision, which can strongly impact USD/JPY. 

    Key data Releases from the JP

    We have BOJ Summary of Opinions from Japan today. Earlier today, we had BOJ’s Core CPI. 

    What’s next? 

    Traders will be watching for the publication of the Conference Board’s US Consumer Confidence Index, which is scheduled for later in the early North American session. This, together with US bond rates, will drive USD demand.

    Aside from that, the wider market risk sentiment may generate some short-term trading opportunities in the USD/JPY pair.

    USD/JPY technical analysis: key levels in action  

    USD/JPY gained 0.10% during the European session and trading 114.102. USD/JPY is slightly above the 100-day moving average on the daily chart, but the MACD is pointing downwards. The pair is looking to pass its December 22nd high. 

    The pair is now seeking to maintain its position above 114.00. This point is a pivot point for the pair. If it goes below this level, it can go towards the next support at 113.98; it’s yesterday’s low. 

    USD/JPY price chart
    USD/JPY price chart

    On the upside, the pair’s resistance is at 114.27. If the pair can break above this level, the next resistance lies at 114.54, the level it reached on November 19. 

    Markets are invaded by algorithms. Learn 5 tips to secure your passive income with algo-based trading systems.
    Learn more
    Forecast JPY USD USD/JPY Forecast
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    Close up of businessman hand pointing at abstract glowing grid with index and candlestick forex chart. Trade and financial data concept. Double exposure

    US Economy Shrank at 1.5% Annual Rate in Q1 of 2022

    May 26, 2022

    US Fed Likely to Hike Rates by 50 Basis Points in Upcoming Meetings-FOMC

    May 26, 2022
    3d illustration of oil pump jacks on sunset sky background. Concept of growing oil prices

    US Commercial Crude Oil Inventories Drop as Imports Fall

    May 25, 2022

    EUR/USD Forecast: Pair Advances amid Bearish DXY

    May 25, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    43  −  37  =  

    Recent Posts
    • Best 10 Crypto Trading Indicators to Choose & Make Profit
    • US Pending Home Sales Edged Down 3.9% in April on Rising Mortgage Rates
    • US Economy Shrank at 1.5% Annual Rate in Q1 of 2022
    • US Fed Likely to Hike Rates by 50 Basis Points in Upcoming Meetings-FOMC
    • BlackQueen Review: Is It a Good Robot to Buy In 2022?
    Editors Picks

    Best 10 Crypto Trading Indicators to Choose & Make Profit

    May 26, 2022

    Best 10 Ways to Earn Free Crypto & Profit Fast

    May 20, 2022

    Best 10 NFT Marketplaces

    May 17, 2022

    Best 10 Cryptocurrency Mining Platforms

    May 16, 2022
    Featured Reviews
    Pionex

    Pionex Review: Pros, Cons, Recommendations

    May 12, 2022
    TradeSanta

    TradeSanta Review: Pros, Cons, Recommendations

    May 18, 2022
    Bitsgap

    Bitsgap Review: Pros, Cons, Recommendations

    April 29, 2022
    © 2022, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.