Can JPY Reach New Lows By the End of 2023? 

Can JPY Reach New Lows By the End of 2023? 

Diperbarui • 2023-11-17

Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and a more moderate increase in exports, despite inflation remaining elevated. While other central banks approach the conclusion of their rate hike cycles, signals indicate the likelihood of impending Yen strength. BoJ Governor Kazuo Ueda suggests a forthcoming decisive policy move, eliminating the necessity for wage growth to tighten policy. Deputy Gov. Shinichi Uchida explores plans to encourage firms to increase wages, potentially providing forward guidance to break the yen from its current range.

USDJPY - D1 Timeframe

USDJPYDaily-1711.png

USDJPY on the Daily timeframe is currently trading within a channel right inside a weekly-timeframe supply zone. Even though the clear conclusion should be a bearish sentiment, I would consider this a two-way possibility until the break and retest of the trendline support, since it overlaps the 50-day moving average. My target, in the case of a breakout, would be the 100-day moving average support.

Analyst’s Expectations: 

Direction: Bearish

Target: 146.600

Invalidation: 152.039

AUDJPY - D1 Timeframe

AUDJPYDaily-1711.png

AUDJPY on the daily timeframe has already been rejected from the supply zone, giving a clear indication of what the direction is expected to be - bearish! With this in mind, my target would be the demand zone as marked, since it aligns perfectly with the trendline support.

Analyst’s Expectations: 

Direction: Bearish

Target: 96.211

Invalidation: 97.780

CADJPY - D1 Timeframe

CADJPYDaily-1711.png

CADJPY is, in my opinion, a no-brainer. On the chart, we can clearly see the supply zone price is currently being rejected from, as well as the demand zone price is likely heading towards. This makes it quite easy to decipher the market sentiment as being bearish.

Analyst’s Expectations: 

Direction: Bearish

Target: 108.469

Invalidation: 109.672

CONCLUSION

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