Chapter 23 USDJPY Continuing the downtrend
10/11/2022
Summary
US data pointing to slowing inflation has raised hopes that the Federal Reserve will slow the pace of sharp interest rate hikes.
Fundamental analysis
After we saw the actual result in the inflation rate CPI in USD at 7.7% This result will reflect In the next FOMC Meeting to slow the pace of sharp interest rate hikes and we saw Recently Bank of Japan take action By supporting the yen against the USD.
U.S. CPI YoY (Not SA) (Oct)
Food (14% of total weight), energy (9.3 %), commodities less food and energy commodities (19.4%), and services fewer energy services (57.3%) comprise the unadjusted Consumer Price Index for All Urban Consumers in the United States. The final category is subdivided into three subcategories: shelter (32.1%), medical care (5.8%), and transportation services (5.5%).
A higher-than-expected figure should be seen as positive (bullish) for the USD while a lower-than-expected figure should be seen as negative (bearish) for the USD
Technical analysis
After this big move down on 4 hours chart, We expect the market to pull back at144.311 And continue the downtrend To the demand zone at 140.183 All this with the 20-moving average pointing down.
