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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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USDJPY Has Key Support at 145 Level

USDJPY has been consolidating from the price surge this year.

The 145 level is the next target for bears ahead of US inflation data.

USDJPY – Weekly Chart

usdjpy weekly chart-Nov-08-2022-04-42-55-8651-AM

The US dollar versus the Japanese Yen is nearing a fourth-straight bearish week, and traders can focus on the 145 price level. That provided resistance in August and support in October.

The greenback has failed to rally despite another 75 bps interest rate hike from the Federal Reserve last week. Traders are likely seeing the potential for a slowdown in aggressive rate hikes from the FOMC.

In last week’s press conference, Fed Chair Jerome Powell said that rates would remain “higher for longer.” That means there will be no fast pivot, and funding differentials will stay in place for the dollar vs. the Yen.

The Bank of Japan had previously said that the “one-way” move against the Yen was a problem and made some moves to intervene in the markets. With that in mind, investors also see the potential for further gains eroding in the US dollar.

This week will add further knowledge to the situation with US inflation data on Thursday.

This week’s headline data is expected to show a dip from 8.2% to 8% in the US inflation rate. Core inflation is also likely to slow by 0.1% to 6.5%.

That is a sign that the aggressive rate hikes are slowly taking effect on the US economy, but the jobs market has remained strong.

After this week’s inflation data, traders can set up trading opportunities around the 145 support level.

Last Updated: 08/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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