Bitcoin, BTC/USD, Bank of Japan, USD/JPY, Market Sentiment – Talking Points
- Bitcoin bears pressure attack as Wall Street morale plummets
- Bank of Japan prepares to decide on interest rate; USD/JPY On Watch
- BTC/USD is preparing for another attack on the 20000 key level
Asia Pacific forecast for Friday
Market enthusiasm evaporated after the FOMC meeting overnight in New York as Wall Street traders pushed the button to sell stocks and bonds. The Dow Jones Industrial Average (DJIA) was down 2.42%, while the high beta Nasdaq-100 (NDX) closed 4.02% lower. Despite the risk aversion, the US dollar fell against most of the major currencies, likely due to the slope of the yield curve.
Asia Pacific currencies benefit from the movement in US Treasury yields. The widening of the yield differential between the two-year Treasuries and the yield on the Australian and New Zealand two-year bonds is driving the AUD/USD and NZD/USD higher. Yesterday, New Zealand miscalculated its GDP growth rate for the first quarter. Australia, however, Saw a number of health jobs.
The Bank of Japan is due to announce its interest rate decision today, which will conclude the eventful week of central bank announcements. The The Bank of England sent the British pound lower overnight after it announced a 25 basis point rate hike. Unlike the Bank of England, the Bank of Japan is unlikely to raise its benchmark lending rate. The 10-year Japanese bond yields saw an astonishing rise as short sellers failed to capitulate against the Bank of Japan’s strong defense of their 0.25% yield ceiling.
butsuch as the Swiss National Bank (SNB), Japanese policymakers may be surprised by the policy, whether it’s a forward directive or a simple change of tone. This could potentially lead to a strengthening of the Japanese yen against the US dollar. The NZD/USD pair may continue to rally after the upbeat May PMI reading from BusinessNZ.
BTC/USD Technical Outlook
The BTC/USD pair is approaching the psychologically important 20,000 level. Bears searched for the 20,000 mark yesterday but failed to break through the intraday move. The RSI is tracking lower within the oversold territory while the MACD weakness is accelerating. A break below the key level may lead to further weakness.
BTC/USD daily chart
The graph was created using TradingView
— By Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the comments section below or Tweet embed on Twitter