JPY – Markets remain cautious on US-China trade outlook, yen trading in a narrow range

Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will continue to raise interest rates if underlying inflation moves toward its 2 percent target as expected. But he said the central bank would look "without preconceptions" at whether its forecasts would be realized, while looking at the various data available. USD/JPY trend, as can be seen from the technical chart, RSI and stochastic index rebounded from the oversold area, it is expected that USD/JPY is expected to reverse the downward trend since the end of last month. The nearest resistance is at 144 and the 25-day moving average of 145.90. Based on the cumulative decline from the high of 151.21 on March 28, the 38.2% rebound level is 144.15, and the extension to 50% and 61.8% are 145.50 and 146.85. The next key reference is the 50-day moving average of 147.60. The supporting level will look at 142.20 and 141, and the next level is expected to be 140 or even the level of 138.

Forecast range:
Resistance 144.00– 145.90 – 146.85 – 147.60
Support 142.20 – 141.00 - 140.00** - 138.00

Focus:
Wednesday: Japan's March industrial production and retail sales (07:50)

Thursday: Bank of Japan rate decision
Japan's April Manufacturing PMI Final Value (08:30)

Friday: Japan's unemployment rate in March (07:30)

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