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U.S. Dollar / Japanese Yen
Short
Updated

USD/JPY: Weak USD Drives the Pair Lower

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USD/JPY is currently trading within a descending channel, with near support at 146.400 and resistance at 148.500. After a strong pullback from 148.500, the price is trying to hold around 146.400.

News: The weakness in US economic indicators (GDP and CPI weaker than expected), along with remarks from Fed officials supporting a more cautious monetary policy, have caused the USD to weaken, providing space for pairs like USD/JPY to adjust lower.

Additionally, slower growth in the US economy and concerns over the Fed's rate hike potential have made the USD less attractive, especially compared to the Japanese yen, where monetary policy remains cautious.

Strategy: If the price breaks below 146.400, the downtrend could continue, targeting 146.000.
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