Crypto Industry News:
Financial media reports that the Japanese government will include consideration of the digital currency of the central bank (CBDC) in its official economic plan. The message appeared 10 days after the announcement by the Bank of Japan that it would start experimenting with the digital yen to check its feasibility from a technical point of view.
According to Nikkei, consideration of CBDC will be included in the Honebuto plan for economic and fiscal revitalization. The Honebuto plan is the cornerstone of Japanese economic and fiscal policy, and the report says the Japanese government will "consider CBDC in coordination with other countries."
After China began testing its CBDC or digital Yuan, the Japanese government accelerated preparations for its own CBDC. In March, in an exclusive media interview, Kozo Yamamoto, a member of the Liberal Democratic Party (LDP) in the House of Representatives and a former official of the Ministry of Finance called on Japan to quickly implement the CBDC:
"If Japan does not emit a digital currency and people in the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty."
The change of attitude was quick. In July 2019, the Bank of Japan maintained that "they did not have a CBDC emission plan". However, in a report from this month, he announced that he would start experimenting with the digital currency of the central bank. According to Nikkei, the Japanese government, not the Bank of Japan, has the final right to assess whether to issue CBDC.
Technical Market Outlook:
Despite the fact, that ETH/USD pair had bounced from the local low at $236.31, which was just above the local technical support located at $235.42, bulls still was not able to break through the trend line resistance again. The price has returned under the trend line and is currently hovering around the level of $237. If the drop is continued, then the next targets for bears are seen at the levels of $232.04 and $224.39. Please notice, the momentum starts to decrease as well which is in line with the short-term bearish outlook.
Weekly Pivot Points:
WR3 - $274.89
WR2 - $261.89
WR1 - $250.42
Weekly Pivot - $236.01
WS1 - $225.12
WS2 - $210.17
WS3 - $199.13
Trading Recommendations:
On the EUR/USD pair, the main long-term trend is down, but the local up trend continues. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).