Central banks could be key this week: Fed, BoE, BoJ

[MongiIG]

After a week in which it was obvious that inflation and confidence was key, this week’s central bank meetings will be of critical importance for the markets, especially the Federal Reserve (Fed) on Wednesday evening.

 

The Bank of England (BoE) at noon UK time on Thursday could raise rates by 50bps, but 25 is expected, and the Bank of Japan (BoJ), on Friday, is the least important of the three.

 

 

 

 

 

[MongiIG]

On 13/06/2022 at 10:02, MongiIG said:

Bank of Japan (BoJ)

Japanese Yen Steadies Against USD as Bank of Japan is in Focus. Has USD/JPY Peaked?

Jun 14, 2022 | DailyFX
Daniel McCarthy, Strategist

JAPANESE YEN, USD/JPY, BOJ, FED, INFLATION, YCC, STAGFLATION- TALKING POINTS

• USD/JPY made a 24-year high this week but lacked follow through
• JPY directionality appears to have stalled ahead the Bank of Japan on Friday
• If the Bank of Japan ignores inflation.

USD/JPY TECHNICAL ANALYSIS

USD/JPY made a new 24-year high yesterday but only by a small margin when it eclipsed the 2020 peak of 135.16 to trade at 135.19.

Technically, one could argue that the 2020 high has not really been breach as it did not close above there. In any case, there might be resistance up to 135.20 if that area is revisited.

Last week the price above the upper band of the 21-day simple moving average (SMA) based Bollinger Bands. It has since moved back inside the band, and this may indicate a reversal is possible.

Support could be at the recent low 133.19 or further down at a break point in the 131.25 131.35 zone.

Chart created in TradingView

 

 

 

Will USD/JPY go higher?