USDJPY Technical Analysis – All eyes on the FOMC decision
Forexlive - Dec 18th, 2024
The US dollar is consolidating around its highs, except against commodity currencies where it has reached new highs. US inflation data remains disappointing, though components feeding into Core PCE appear stable. Treasury yields are climbing, reaching levels seen post-US election, causing unease in the bond market amidst strong US data and Fed cuts. The Federal Reserve is expected to cut interest rates by 25 basis points, adjusting the Federal Funds Rate to 4.25-4.50%. The Summary of Economic Projections may revise growth and inflation upwards, and the Dot Plot is likely to show two rate cuts in 2025. Fed Chair Powell is expected to acknowledge strong US data and slow easing pace, with market expectations already set for two rate cuts in 2025. The USDJPY pair's movements are influenced by Treasury yields, with focus on the FOMC decision. Technical analysis indicates potential risk-reward setups for both buyers and sellers around key support and resistance levels. Upcoming events include the FOMC policy decision, BoJ rate decision, US jobless claims, Japanese CPI, and US PCE data.
RATING
The article provides a detailed analysis of the USD and USDJPY currency pairs, focusing on technical analysis and upcoming economic events. However, it lacks citations and could benefit from more balanced perspectives and transparent sourcing.
RATING DETAILS
The article presents specific data points regarding US inflation, Treasury yields, and anticipated Fed actions. However, the predictions and analysis are not supported by citations or references to specific data sources, which could affect factual accuracy and verifiability.
The article focuses on a particular market perspective, primarily from a technical analysis viewpoint, and does not provide a range of viewpoints or consider alternative analyses or opinions. This limits the balance of perspectives presented.
The language used in the article is mostly clear and free from emotive terms, and the article is logically structured. However, technical jargon and certain complex financial terms may not be easily understood by all readers without additional context or explanation.
There are no sources cited in the article, which affects the credibility and reliability of the information provided. The lack of source attribution makes it difficult to assess the authority of the information.
The article does not disclose any potential conflicts of interest or affiliations that may affect impartiality. It also lacks details on the methodology or sources of data used in the analysis, reducing transparency.