US:

• The Fed left interest rates unchanged as
  expected.
• The macroeconomic projections were revised higher
  as the economy showed much stronger resilience than expected and the Dot Plot
  showed that the majority of members still expects another rate hike by the end
  of the year with less rate cuts in 2024.
• Fed Chair Powell
  reaffirmed their data dependency but added that they will proceed carefully as
  they are trying to find the optimal level of rates. Powell also added that the
  soft landing is not the base case at the moment, although they are aiming for
  it.
• The latest US CPI came
  in line with expectations with the Core measure continuing to show
  disinflation.
• The labour market displayed
  signs of softening although it remains fairly solid as seen also yesterday with
  another beat in Jobless Claims.
• The US Consumer Confidence this
  week missed expectations although the jobs details were positive.
• The market doesn’t expect the Fed to hike again at
  the moment.

Japan:

• The BoJ kept everything unchanged as expected.
• The Japanese CPI last week showed that inflationary
  pressures remain high with the core-core reading hovering at the cycle highs.
• The Unemployment Rate today missed expectations although
  it matched the previous reading.
• The Japanese Manufacturing PMI fell further into contraction but
  the Services PMI remains in expansion.
• BoJ governor Ueda repeated that they will not
  hesitate to take additional easing measures if needed and clarified that the
  recent comment on “quiet exit” from monetary easing was misinterpreted.
• The recent Japanese wage data showed a slowing in wage growth,
  and this is something the BoJ focuses on particularly.
• The Tokyo CPI, which is seen as a leading
  indicator for national CPI, continues to fall although it remains well above
  the BoJ target.

USDJPY Technical Analysis –
Daily Timeframe

On the daily chart, we can see
that USDJPY is getting close to the key 150.00 level which is the target of
many market participants and it’s also considered the line in the sand for an
intervention. The trend remains bullish as the price continues to print higher
highs and higher lows with the moving averages being
crossed to the upside and acting as dynamic support. The divergence in the
economic data between US and Japan continues to favour the upside.

USDJPY Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that we have a
massive divergence with the
MACD which is
generally a sign of weakening momentum often followed by pullbacks and
reversals. This may be justified by the fear of an intervention that prevents
the price to shoot up faster. The price action has also formed what looks like
a rising wedge, which
is a reversal pattern. If the price breaks below the bottom trendline, we
might see the pair going back to the 145.00 level.

USDJPY Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the
price is printing lower lows and lower highs on this timeframe. The market
might need to take a breather or something more on the fundamental side to push
into the highs again. We might see the pair pulling back into the bottom
trendline where the buyers are likely to step in again.

Upcoming Events

Today the only notable release will be the US PCE
report. The data is unlikely to change anything for the market unless we get
some big surprises.

See also the video below:

MoneyMaker FX EA Trading Robot