The USDJPY currency pair has seen an increase in demand, resulting in a new intraday high at 140.548. This comes after a period of weakness earlier in the day due to the Bank of Japan’s decision, which has now been reversed.
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- USD/JPY picks up bids to refresh intraday high, reversing early day weakness on BoJ’s verdict.
The pair currently trades last at 140.548.
The previous day high was 141.5 while the previous day low was 139.94. The daily 38.2% Fib levels comes at 140.91, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.54, expected to provide support.
USD/JPY takes the bids to refresh intraday high near 140.70 as the Bank of Japan (BoJ) keeps monetary policy unchanged, as expected, during early Friday. Adding strength to the Yen pair’s upside momentum could be the US Dollar’s consolidation of the previous day’s heavy losses and a corrective bounce in the yields.
BoJ keeps the short-term interest rate target at -0.1% while directing 10-year Japanese Government Bond (JGB) yields with the band of +/-0.50%, per the latest monetary policy meeting update. The Japanese central bank also tames inflation fears by saying that the Consumer Price Index (CPI) around 3.5% recently owing to pass-through effects.
Also read: Breaking: BoJ leaves monetary policy settings unadjusted, USD/JPY advances
On the other hand, US Dollar Index (DXY) picks up bids to pare the biggest daily loss in three months around 102.30. That said, the quote dropped heavily the previous day on mixed US data and market’s lack of conviction about the Fed’s July rate hike, even if the policymakers did utter the same on Wednesday.
That said, the latest US dollar rebound could be linked to the mildly bid Treasury bond yields and cautious mood ahead of the second-tier data, as well as nearly 70% market bets on the July Fed rate hike, per the CME’s FedWatch Tool.
Having witnessed the initial reaction to the BoJ, the Yen pair will pay attention to Governor Kazuo Ueda’s press conference, around 06:00 AM GMT, for fresh impulse. Although BoJ’s Ueda has previously ruled out the need for any change to the currency monetary policy, hints of future exit from the ultra-easy measures may allow the USD/JPY bulls to take a breather.
Following that, the preliminary readings of the Michigan Consumer Sentiment Index (CSI) for June and five-year inflation expectations will be crucial for clear directions, especially amid the recently easing hawkish Fed bets.
Despite the latest run-up, the USD/JPY remains inside a 3.5-month-old rising wedge bearish chart formation, between 141.60 and 137.70 by the press time. That said, the overbought RSI conditions challenge the Yen pair buyers of late.
Technical Levels: Supports and Resistances
USDJPY currently trading at 140.12 at the time of writing. Pair opened at 140.35 and is trading with a change of -0.16% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 140.12 |
| 1 | Today Daily Change | -0.23 |
| 2 | Today Daily Change % | -0.16% |
| 3 | Today daily open | 140.35 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.58, 50 SMA 136.71, 100 SMA @ 134.89 and 200 SMA @ 137.24.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 139.58 |
| 1 | Daily SMA50 | 136.71 |
| 2 | Daily SMA100 | 134.89 |
| 3 | Daily SMA200 | 137.24 |
The previous day high was 141.5 while the previous day low was 139.94. The daily 38.2% Fib levels comes at 140.91, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.54, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 139.7, 139.04, 138.14
- Pivot resistance is noted at 141.26, 142.16, 142.82
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 141.50 |
| Previous Daily Low | 139.94 |
| Previous Weekly High | 140.45 |
| Previous Weekly Low | 138.76 |
| Previous Monthly High | 140.93 |
| Previous Monthly Low | 133.50 |
| Daily Fibonacci 38.2% | 140.91 |
| Daily Fibonacci 61.8% | 140.54 |
| Daily Pivot Point S1 | 139.70 |
| Daily Pivot Point S2 | 139.04 |
| Daily Pivot Point S3 | 138.14 |
| Daily Pivot Point R1 | 141.26 |
| Daily Pivot Point R2 | 142.16 |
| Daily Pivot Point R3 | 142.82 |
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