The US Dollar remains trapped within this week’s price action against Ringgit, trading at 4.1560. The Initial Jobless Claims data came in slightly lower than expected (290k real against 300k forecast), which is generally positive for the US Dollar. On the other hand, as the number came very close to what was expected, it did not cause great volatility in the market. Fed’s President Jay Powell’s speech could cause some volatility this Friday, as he could give important hints about the next steps in US monetary policy. From a technical point of view, the USDMYR remains sideways and a break above the 4.1700 level could pave the way for it to rise to 4.2400 in a few days.
The US Dollar has made a wide bullish move against the Japanese Yen in recent days, accumulating a 5.11% gain from its lowest price in September. At the time of this analysis, the USDJPY is trading at 114.14. The devaluation of the JPY happened against all of its counterparts and is partly due to the change of the Japanese prime minister, which took place on October 4th. From a technical standpoint, the USDJPY has just touched a major resistance region at 114,695, the highest price since 2017. As the price starts to show signs of exhaustion, it is possible that sellers are prepared to cause a major pullback in USDJPY. If the price manages to break below 113.60, it could drop to 112.30, where it is likely to find some buying strength.
