The USD/JPY exchange rate has important data ahead, with the latest U.S. GDP and Japanese consumer inflation numbers.
USDJPY – Daily Chart
The USDJPY is making a push for the resistance level at 148.49, and a hold of this breakout can target the resistance ahead of the 151.00 level.
The first data comes late in the day at 8:30 pm HKT, but traders can use the time to prepare for potential scenarios ahead of the number and the 7:30 am release on Friday of Japanese consumer inflation numbers. The data can secure the trend into the weekend and at the start of the coming week.
U.S. growth is expected to show a 3.3% annualized reading, and any deviation could adjust the exchange rate. The more important number is the Japanese consumer price reading, which will be compared to last month’s 2.6% yearly reading and 3% excluding energy and food.
It is also important to be positioning for a coming change in the Prime Minister position in Japan. Sanae Takaichi, a contender to be the country’s first female prime minister, said the BOJ is responsible for monetary policy. That was a reversal of tone from her criticism last year of interest rate hikes.
Takaichi described rate hikes last year as “stupid,” but she now sees the central bank as responsible for that element of policy.
“If interest rates rise sharply, that could raise questions as to whether companies can direct enough money for investment. It could also affect households’ mortgage rates,” Takaichi said.
“With aid to households and investment to boost productivity, I’d like to shift Japan’s state of inflation into a moderate one driven by wage growth,” she added.
Her comments will likely support the Japanese yen, as interest rate hikes can boost the exchange rate against the dollar at this time.
