<p style=““ class=“text-align-justify“>The pair is up by 0.1% to 1.1530 levels with the low earlier touching 1.1477 in European morning trade. As much as the announcement by UK PM Truss is a welcome development for households, it still won’t be enough to really dig the UK out of a recession heading into next year.</p><p style=““ class=“text-align-justify“>Sure, there might be some relief to households but essentially it comes with a fiscal cost and the root of the energy problems are still not being addressed. In other words, this is another can being kicked down the road.</p><p style=““ class=“text-align-justify“>For me, the bounce in cable today seems to be a case of a rejection at the support near the March 2020 lows close to 1.1400:</p><p style=““ class=“text-align-justify“>It’s a modest bounce but buyers will have to do more to convince of a stronger rebound. The 200-hour moving average at 1.1575 currently will be a key near-term level to watch in that regard. Otherwise, I still maintain that the path of least resistance is for the quid to move lower so long as the BOE looks the more likely of the two (against the Fed) to fold first in the monetary policy tightening race.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Typical household will pay no more than £2,500 a year on energy bills</li><li>This will be in effect for two years from 1 October</li><li>The guarantee supercedes Ofgem’s price cap</li><li>Businesses will also be supported on energy costs</li><li>The support scheme for businesses will be for six months initially</li></ul><p style=““ class=“text-align-justify“>There’s no mention of the cost yet but previous reports have suggested that it should be at least £170 billion. In effect, this will make energy bills more affordable for UK households but essentially the cost is being spread out to the future.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The pair fell to a low of 143.45 earlier after remarks by Japan top currency diplomat Kanda <a target=“_blank“ href=“https://www.forexlive.com/news/japan-top-currency-diplomat-government-boj-is-extremely-worried-about-recent-yen-moves-20220908/“ target=“_blank“>here</a>. But as mentioned then, the warnings are merely still verbal intervention at the end of the day – even if they are a step up from what they used to previously remark on the currency.</p><p style=““ class=“text-align-justify“>USD/JPY has brushed aside that in a push back up to 144.00 now, up 0.2% on the day.</p><p style=““ class=“text-align-justify“>It must be noted that 145.00 remains a tough resistance point to break through and there is talk of knock out options at the figure level. That will make it even harder for buyers to chew through or touch that level to seek a further push higher. But at the same time, if we do see that layer give way, expect a quick shoot towards 147.00 next.</p>

This article was written by Justin Low at forexlive.com.