The USDJPY currency pair, trading at 141.408, experienced a decrease below the 141.50 level and reached a lowest point of 141.28 within the daily trading period.
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- USD/JPY dipped below the 141.50 zone, hitting a daily low of 141.28.
The pair currently trades last at 141.408.
The previous day high was 142.0 while the previous day low was 141.44. The daily 38.2% Fib levels comes at 141.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.66, expected to provide resistance.
The USD/JPY fell to negative territory losing over 40 pips below the 141.50 area as the Yen gained interest as markets anticipated a Bank of Japan’s (BoJ) stealth intervention. However, the Japanese currency remains vulnerable amid the rate cuts announced by the People Bank of China (PBoC), which fueled global economic downturn worries.
A Reuters poll revealed that a majority of economists believe Japan’s government and the BoJ are likely to take action if the Japanese Yen experiences a decline and reaches the 145 per U.S. Dollar level. In that sense, markets will look for any clues regarding the potential intervention on the release of the June BoJ’s meeting minutes, set to be released in the early Asian session on Wednesday.
On the other hand, during the Asian session, the People’s Bank of China announced a decrease in the benchmark Loan Prime Rates (LPRs) by 10 basis points (bps). This decision resulted in the one-year LPR declining from 3.65% to 3.55%, while the five-year LPR was reduced from 4.30% to 4.20%. These rate cuts served as a reminder to investors of the sluggishness observed in Chinese economic activity, and as China is a big trading partner from Japan, the JPY is set to remain vulnerable.
On the US Dollar side, the Greenback gained traction on the back of upbeat housing market data. The US Census Bureau’s May Housing Starts data surpassed expectations with a significant increase of 21.7%, outperforming the anticipated 0.8% decline. Similarly, Building Permits for the same month exceeded consensus by rising 5.2% instead of the expected 5% and helped the USD hold its ground as the DXY index trades with gains at the 102.75 area.
Focus now shifts to Chair Powell’s testimony before the US Congress on Wednesday’s session, where market participants will look for clues regarding the next steps of the Federal Reserve (Fed) monetary policy.
In terms of technical analysis, the Ninja indicates a neutral to bullish outlook for the short term. Despite bulls taking a breather, the positive readings of both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that the market could be gearing up for another upward movement.
On the downside, the daily low at 141.30 stands as immediate support for the pair. If breached, the price could see a steeper decline towards the 20-day Simple Moving Average (SMA) at 140.05 and 139.20 zone. Furthermore, if the pair manages to move higher, the next resistances to watch are at the 142.00 zone, followed by the 142.50 area and the 143.00 level.
Technical Levels: Supports and Resistances
USDJPY currently trading at 141.38 at the time of writing. Pair opened at 141.97 and is trading with a change of -0.42 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 141.38 |
| 1 | Today Daily Change | -0.59 |
| 2 | Today Daily Change % | -0.42 |
| 3 | Today daily open | 141.97 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.94, 50 SMA 137.07, 100 SMA @ 135.13 and 200 SMA @ 137.23.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 139.94 |
| 1 | Daily SMA50 | 137.07 |
| 2 | Daily SMA100 | 135.13 |
| 3 | Daily SMA200 | 137.23 |
The previous day high was 142.0 while the previous day low was 141.44. The daily 38.2% Fib levels comes at 141.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.66, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 141.61, 141.24, 141.05
- Pivot resistance is noted at 142.17, 142.37, 142.73
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 142.00 |
| Previous Daily Low | 141.44 |
| Previous Weekly High | 141.92 |
| Previous Weekly Low | 139.01 |
| Previous Monthly High | 140.93 |
| Previous Monthly Low | 133.50 |
| Daily Fibonacci 38.2% | 141.79 |
| Daily Fibonacci 61.8% | 141.66 |
| Daily Pivot Point S1 | 141.61 |
| Daily Pivot Point S2 | 141.24 |
| Daily Pivot Point S3 | 141.05 |
| Daily Pivot Point R1 | 142.17 |
| Daily Pivot Point R2 | 142.37 |
| Daily Pivot Point R3 | 142.73 |
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