USD/JPY Continues Downward Trend

What to Expect with the FOMC Meeting Next Week

The USD/JPY pair has been on a downward trend recently, and with the Federal Open Market Committee (FOMC) expected to shift into a cutting cycle next week, the prospect of going long on this pair becomes less and less attractive. Despite positive rollover rates at the moment, there is a possibility that these rates could tighten even further in the near future. Additionally, with the 38.2% level of the major move from 2021-2024 still intact, it is likely that there are still carry traders who are holding onto their positions.

Impact on Individuals

For individual traders, the continued downward movement of the USD/JPY pair could potentially mean lower returns on their trades. It is important to stay updated on the latest market news and analysis to make informed trading decisions.

Global Impact

The weakening of the USD/JPY pair could have broader implications for the global economy. A depreciating USD could make it more expensive for other countries to import goods from the United States, potentially leading to trade imbalances and economic disruptions.

Conclusion

In conclusion, the USD/JPY pair is currently facing downward pressure, and with the upcoming FOMC meeting expected to bring further cuts, it is important for traders to be cautious in their approach. Stay informed and be prepared for potential shifts in the market.