18 Sep, 2023
5 minutes
USDJPY XAUUSD Market Insight
USD/JPY
Japan must change the policies that caused the yen to depreciate, if it wants to truly solve the problem of yen weakness, because the Bank of Japan intervention measures are ineffective. That's why the Bank of Japan is likely to raise interest rates from negative level, abandon yield curve control, and stop buying bonds. If these happen, the impact on the yen should be far greater than previous futile currency interventions.
We can see USD/JPY is still oscillating around moving average systems, it is a sign strong momentum on H4 chart. Owing to BOJ constant easing policy, the Yen may depreciate further in future. In addition, MACD positive histogram bar and double line has converged, which means potential rise would be happened. Thus, the buy limit could be set around 146.50 if price retreats.
XAU/USD
As China strong physical demand for gold that provides support for gold prices, and the market generally expects the FED to keep interest rates unchanged this week. Therefore, gold rose slightly, and the price successfully stood above 1930. Investors are focusing on central bank action, and expectations that the Fed will keep the long-term interest rate higher in narrative. If interest rates remain high for long time, it will be detrimental to gold, and only significant break above $1,950 can provide new impetus for gold price.
As we mentioned before, the gold has stood above moving average system and then tried to touch 1940 on H4 chart. On the other hand, we can see the MACD histogram bar seems to shrink for retracement, that is signal of potential decline. As a result, the sell limit could be set between 1942 to 1950, stop loss is necessary.