Japan markets are out for a long weekend to celebrate the Showa holiday. That been the case, What will be the pair’s first challenge this week? This is highlighted in this 30 April USDJPY Fundamental Drivers Forecast.
30 April, GKFX – The USD/JPY pair is trading on the high side of Monday’s action so far, testing into 109.15, but a solid movement is looking unlikely on holiday volumes.
Japanese markets dark for the long weekend
Japan markets are out for a long weekend to celebrate the Showa holiday, and thinned market volumes are pulling wind out of the USD/JPY’s sails after closing higher for five consecutive weeks.
The early week sees little impactful news for the JPY side, with only the Nikkei Manufacturing PMI on Tuesday at 00:30 GMT (expected 52.6, prev. 53.3), while the USD side sees the Core Personal Consumption Index on Monday at 12:30 GMT (forecast 1.8%, prev. 1.6%).
Economic growth has been picking up within the US economy at a noticeable pace, and the likelihood of further rate hikes is propping up the US Dollar against the broader FX market.
30 April USDJPY Fundamental Drivers Forecast
FXStreet’s own Valeria Bednarik on why the USD/JPY’s next move is likely to be a correction into Friday’s lows before continuing the major bull trend:
“In the 4 hours chart, the price holds far above bullish moving averages, while the RSI indicator bounced from its mid-line, albeit the Momentum entered negative territory with a downward slope, all of which maintains the bullish trend in place, but suggest a possible bearish correction on a break below 108.95, Friday’s low and the immediate support.”
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