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31.07.202405:00 Forex Analysis & Reviews: Forecast for USD/JPY on July 31, 2024

USD/JPY

Today, the Bank of Japan will announce its monetary policy plan. It's a challenging day for market participants, as the central bank might implement various tightening measures. The most impactful plan would be a rate hike combined with a reduction in the balance sheet or, more precisely , reducing the volume of bonds purchased for the balance sheet. Although this is unlikely, alternatives involve a rate hike with dovish or hawkish rhetoric, a balance sheet reduction with various additional messages, or even just a hawkish verbal intervention. We lean towards the idea that the BOJ will likely announce a reduction in government bond purchases without changing the rate, as the central bank has already indicated. However, this alone should be enough to ensure the yen does not weaken and negate the central bank's intervention efforts.

Exchange Rates 31.07.2024 analysis

At 151.95, the low of July 25, there is support from the weekly MACD indicator line.

Exchange Rates 31.07.2024 analysis

A break below this line will intensify the pair's decline, first towards the range of 150.83-151.23 and then to 148.82 – the low of October 30, 2023. A correction is possible from this level, as the Marlin oscillator will be in the oversold zone.

Exchange Rates 31.07.2024 analysis

On the 4-hour chart, the price has settled below the MACD line and the target level of 153.60. The Marlin oscillator appears to be in the negative zone. We await further developments.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Laurie Bailey,
Analytical expert of InstaSpot
© 2007-2024
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