The USDJPY currency pair has recorded three days in a row of increases, reaching close to the 143.30 level, and showing a gain of 0.70%.
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- USD/JPY tallies a third consecutive day of gains near rising near the 143.30 area, displaying 0.70% gains.
The pair currently trades last at 143.395.
The previous day high was 142.7 while the previous day low was 140.69. The daily 38.2% Fib levels comes at 141.93, expected to provide support. Similarly, the daily 61.8% fib level is at 141.46, expected to provide support.
On Tuesday, the USD traded with gains agains most of its rivals, including the EUR, GBP and JPY, following the release of mid-tier economic data. On the other hand, the JPY continues to weaken amid the Bank of Japan’s (BoJ) dovish stance.
The Institute for Supply Management (ISM) from the US released its July PMI, which came in at 46.4 vs the 46.8 expected but higher than the previous 46 reading. On the other hand, the June JOLTs Job Openings, which captures job vacancies, came in at 9.58M vs the 9.62M expected and the previous 9.82M. It’s worth noting that Federal Reserve (Fed) Chairman Jerome Powell pointed out that the economy is resilient and the labour market “tight”, confirming that future decisions will depend on incoming data. In that sense, the USD price dynamics will face volatility in the outcome of the economic data unit at the next September meeting as market participants will place bets on the outcome of the incoming economic figures.
That said, ADP job employment change figures on Wednesday, Jobless Claims on Thursday, and the Nonfarm Payrolls (NFP) on Friday will be closely watched.
Regarding the following Federal Reserve monetary policy decisions, tightening expectations remain steady. According to the CME FedWatch tool, markets are currently pricing in a 20% chance of a 25 bps hike in the September meeting and 29% odds of a 25 bps hike in November.
On the Japanese side, due to the Bank of Japan’s (BoJ) dovish stance and limited flexibility in their Yield Control Curve (YCC), the JPY is losing ground against other currencies. The BoJ has no plans to normalise monetary policy as inflation remains below its estimates. Meanwhile, other central banks like the Federal Reserve, European Central Bank, and Bank of England have divergent economic policies that could further weaken the Yen.
With Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) comfortably placed in positive territory on the daily chart, the USD/JPY buyers hold the upperhand. The upwards slope of the Relative Strength Index (RSI) further reinforces this positive sentiment, as does the MACD, which displays green bars, indicating a strengthening bullish momentum. On the other hand, the pair is above the 20,100,200-day SMAs, suggesting that the bears are struggling to challenge the overall bullish trend.
Resistance levels: 143.50, 144.00, 144.50.
Support levels: 142.30,140.80 (20-day SMA), 140.00.
Technical Levels: Supports and Resistances
USDJPY currently trading at 143.3 at the time of writing. Pair opened at 142.29 and is trading with a change of 0.71 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 143.30 |
| 1 | Today Daily Change | 1.01 |
| 2 | Today Daily Change % | 0.71 |
| 3 | Today daily open | 142.29 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 140.85, 50 SMA 141.04, 100 SMA @ 137.51 and 200 SMA @ 136.67.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 140.85 |
| 1 | Daily SMA50 | 141.04 |
| 2 | Daily SMA100 | 137.51 |
| 3 | Daily SMA200 | 136.67 |
The previous day high was 142.7 while the previous day low was 140.69. The daily 38.2% Fib levels comes at 141.93, expected to provide support. Similarly, the daily 61.8% fib level is at 141.46, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 141.09, 139.89, 139.09
- Pivot resistance is noted at 143.1, 143.9, 145.1
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 142.70 |
| Previous Daily Low | 140.69 |
| Previous Weekly High | 141.82 |
| Previous Weekly Low | 138.07 |
| Previous Monthly High | 144.91 |
| Previous Monthly Low | 137.24 |
| Daily Fibonacci 38.2% | 141.93 |
| Daily Fibonacci 61.8% | 141.46 |
| Daily Pivot Point S1 | 141.09 |
| Daily Pivot Point S2 | 139.89 |
| Daily Pivot Point S3 | 139.09 |
| Daily Pivot Point R1 | 143.10 |
| Daily Pivot Point R2 | 143.90 |
| Daily Pivot Point R3 | 145.10 |
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